- 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.
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What are the odds of spot Bitcoin ETF approval? Find out here:
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