SEC Chairman Gary Gensler warned about the volatile nature of crypto assets. The thread appeared two days before the decision on spot Bitcoin ETFs.
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1⃣ 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.
— Gary Gensler (@GaryGensler) January 8, 2024
The official did not connect his post with the mentioned event. Industry participants saw this as an additional signal that a positive decision would be made soon. The recommendations come as firms submit updated proposals for product launches.
Previously, the department’s Education Department warned about the risks of digital assets.
«[Фирмы], which offers cryptocurrency-related services may not comply with applicable laws. Investors […] must be aware that they may not be provided with key information and [..] means to protect their investments”, – Gensler pointed out.
The head of the SEC also recalled the risks of crypto service providers.
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3⃣Fraudsters continue to exploit the rising popularity of crypto assets to lure retail investors into scams. These investments continue to be replete w/ fraud- bogus coin offerings, Ponzi & pyramid schemes, & outright theft where a project promoter disappears w/ investors’ money.
— Gary Gensler (@GaryGensler) January 8, 2024
“A number of large platforms have become insolvent and/or lost value. […] Fraudsters continue to exploit the growing popularity of crypto assets to lure retail investors into scams. These offers are still rife with scams — fake coin issues, Ponzi and pyramid schemes, and outright theft,” – he explained.
Gensler’s latest comments echoed themes from his December interview with CoinDesk.
Let’s remember that CryptoQuant analysts suggested that the approval of a Bitcoin ETF would raise the asset’s quotes to $54,000. Morgan Creek Digital co-founder Anthony Pompliano warned that the launch of the tool would not double the price of the first cryptocurrency overnight.
The opposite opinion was expressed by JAN3 CEO Samson Moe. He predicted digital gold would rise to $1 million within “days or weeks” of the ETF’s approval.
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2024-01-09 06:01:28
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