Gary Gensler Issues Crypto Advice as BTC ETF Deadline Looms

SEC Chair Gary Gensler offered some advice to crypto investors ahead of the much-awaited spot Bitcoin ETF decision.

Gary Gensler welcomes you to a Crypto 101 class straight from his graduation.
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  • SEC Chair Gary Gensler has broken the silence as the Bitcoin ETF decision nears.
  • Gensler issued cautionary advice to crypto investors.
  • The chair touched on compliance in the crypto industry.

The entire crypto industry and the U.S. financial sector are eagerly awaiting news from the Securities and Exchange Commission (SEC) Chair, Gary Gensler, on whether the regulator will approve a spot Bitcoin ETF by January 10, as Cathie Wood recently hinted.

Amid the waiting and anxiety, Gensler seized the opportunity to issue a stark warning to those considering investing in crypto assets, noting that digital assets “can be exceptionally risky & often volatile.”

Gensler’s Advice to Crypto Investors

On January 8, Gary Gensler took to his official Twitter (X) page and sent a cautionary message to budding crypto investors. Particularly, Gensler cautioned that investors may be deprived of legal protection thanks to rampant incompliance across the industry.

“Those offering crypto asset investments/services may not be complying w/ applicable law, including federal securities laws. Investors in crypto asset securities should understand they may be deprived of key info & other important protections in connection w/ their investment,” Gensler wrote.

The SEC Chair cautioned investors to be wary of market volatility in the digital assets industry, noting that “Investments in crypto assets continue to be subject to significant risk,” evidenced by “a number of major platforms” that have run out of business.

Further, Gensler touched on crypto scams, pointing out that fraudsters continue to exploit the rising popularity of crypto assets to lure victims into “bogus coin offerings, Ponzi & pyramid schemes, & outright theft where a project promoter disappears w/ investors’ money.”

Gensler’s remarks come as at least 11 Bitcoin ETFs are in line for approval or rejection.

Read why Twitter’s attempt to curtail spam is failing:
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What are the odds of spot Bitcoin ETF approval? Find out here:
Bitcoin ETF Approval Odds Now 95%, Bloomberg Analyst Claims

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Brian Danga

Brian Danga, a Kenyan crypto reporter, is dedicated to delivering breaking news and updates from the cryptocurrency world. With a background as a Web3 writer and project manager, he recognizes the importance of unbiased reporting. Holding an LLB degree from the University of Nairobi, Brian's analytical skills contribute to his accurate news reporting. His personal interests include cooking, watching documentaries, reading, and engaging in intellectual discussions.