U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler has advised investors to be cautious when considering crypto investments. His advice followed a series of warnings he issued the day before regarding the risks of crypto investing. The SEC is expected to green-light multiple spot bitcoin exchange-traded funds (ETFs) on Wednesday.
Gary Gensler’s Advice to Crypto Investors
The chairman of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, released another statement regarding crypto investing Tuesday, amid market expectations of imminent approval for spot bitcoin exchange-traded funds (ETFs).
In a post on social media platform X, Gensler urged investors to be cautious if they are considering an investment involving crypto assets. He warned: “Crypto asset securities may be marketed as new investment opportunities but there are serious risks involved.”
The SEC chairman posted a link to an article by Lori Schock, Director of the SEC’s Office of Investor Education and Advocacy, titled “Thinking About Buying the Latest New Cryptocurrency or Token?”
The article highlights various risks associated with crypto investing, along with offering advice on what investors should do. One piece of advice is “Don’t fall for high-pressure sales tactics, the promise of guaranteed returns or too good to be true claims.” The director noted:
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.
Gensler’s statements about crypto investing on Tuesday mark the second consecutive day of addressing the matter. On Monday, he warned about various risks associated with crypto investing, and over the weekend, the SEC cautioned investors against succumbing to the fear of missing out (FOMO).
A Prelude to Imminent Spot Bitcoin ETF Approval?
Gensler issuing statements on crypto twice this week has fueled optimism surrounding the imminent approval of spot bitcoin ETFs by the SEC. A decision is anticipated on Wednesday, the deadline for the joint proposal by Cathie Wood’s Ark Invest and 21shares.
Fox Business reporter Charles Gasparino shared 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.
One lawyer reportedly explained to the reporter: “There are no more SEC impediments to approval — SEC is a disclosure-based and process-based regulator — risks are now known and trading processes are adequate but you are warned — risks are super high and processes outside [the] U.S. cannot be policed.”
On Tuesday evening, the official SEC account on X announced that the securities regulator has approved spot bitcoin ETFs. However, 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 do you think about Gensler making statements about crypto twice this week ahead of the spot bitcoin ETF decision deadline? Let us know in the comments section below.
from Bitcoin News https://ift.tt/tM2vhaQ
