SEC Chairman Gary Gensler Issues an Advisory to Investors
The US Securities and Exchange Commission (SEC) Chairman, Gary Gensler, issued an advisory to investors to adopt caution when opting for crypto investments. His advice follows several warnings he issued the day before regarding the associated risks of investing in crypto assets. The SEC is likely to approve multiple-spot Bitcoin exchange-traded funds (ETFs) on Wednesday.
Gary Gensler Advises Caution to Crypto Investors
The chairman of the US Securities and Exchange Commission (SEC), Gary Gensler, released another advisory related to crypto investing on Tuesday amid market expectations of imminent approval for spot Bitcoin exchange-traded funds (ETFs).
Gensler urged investors to adopt caution in a post on social media platform X if they are opting for an investment in crypto assets. He warned: “Crypto asset securities may be marketed as new investment opportunities, but there are serious risks involved.”
The SEC chairman shared the link to an article by Lori Schock, Director of the Office of Investor Education and Advocacy, titled “Thinking About Buying the Latest New Cryptocurrency or Token?”
The article focuses on various risks associated with crypto investing, along with advisory notes on investment. An example of the advice given is “Don’t fall for high-pressure sales tactics, the promise of guaranteed returns, or too good-to-be-true claims.” The director stated:
"Cryptocurrencies may be today’s shiny new opportunity but there are serious risks involved. Proceed with caution, do your research, evaluate your financial goals, and most importantly, don’t flip a coin when you’re making investment decisions."
Tuesday is the second consecutive day in succession held by Gensler on crypto investing. On Monday, he warned about various risks associated with crypto investing, and over the weekend, the SEC cautioned investors against falling for the 'fear of missing out' (FOMO).
Lawyers See as Prelude to Spot Bitcoin ETF Approval
Gensler's statements twice this week on crypto have raised hopes of an imminent approval of spot bitcoin ETFs by the SEC. The deadline for the joint proposal by Cathie Wood’s Ark Invest and 21shares ends on Wednesday.
Charles Gasparino, a Fox News Business reporter, posted on social media platform X on Tuesday:
"Top securities lawyers who deal with the SEC believe Gary Gensler’s recent crypto warnings are a prelude to the imminent ‘spot’ BTC ETF approval."
The reporter further shared the input collected from a lawyer: “There are no more impediments to the approval. The SEC is a disclosure-based and process-based regulator; the risks are now known and trading processes are adequate, but you are warned that the risks are super high and processes outside the US cannot be policed.”
The official SEC account on X announced that the securities regulator has approved spot bitcoin ETFs on Tuesday evening. A moment later, Gensler posted on X that the ETF approval post was unauthorized, stating that the agency’s social media account was compromised.
What is your take on Gensler making statements about crypto twice this week ahead of the spot Bitcoin ETF decision deadline? Please share your thoughts and opinions in the comments section below.
0 Comments