- SEC Chairman Gary Gensler warned that cryptocurrency investing remains risky and volatile, with fraudsters continuing to take advantage of inexperienced investors.
- Gensler cautioned that major cryptocurrency companies have failed or lost value recently, leaving investors with nothing despite the hype.
- Gensler’s warning comes as the cryptocurrency industry expects the SEC to approve the first Bitcoin ETF in the US this week, representing a major milestone despite the SEC’s tense relationship with crypto companies.
In a series of posts on Twitter, Gensler cautioned that investments in cryptocurrencies “can be exceptionally risky and are often volatile.” He noted that major cryptocurrency companies have failed or lost value, leaving investors with nothing. “Fraudsters continue to explore the rising popularity of crypto assets to lure retail investors into scams,” Gensler wrote.
The Bitcoin ETF
Gensler’s warning comes just as the cryptocurrency industry expects the SEC to approve the first spot Bitcoin ETF in the US this week. The SEC has had a tense relationship with cryptocurrency companies, frequently filing lawsuits and taking an enforcement-first approach. The anticipated Bitcoin ETF approval represents a major milestone for the industry. However, Gensler seems intent on reminding investors that cryptocurrencies remain risky assets.
While the expected approval of a Bitcoin ETF is generating hype, SEC Chairman Gary Gensler wants to make investors aware that cryptocurrencies are volatile investments still rife with scams. His warning provides a sobering counterpoint during a period of celebration for crypto advocates. Investors would be wise to approach cryptocurrencies with caution, even as the market evolves.