May 30, 2024

SEC Chair Gary Gensler Warns Crypto Investors to ‘Be Cautious’

Amid the hype surrounding the impending Spot Bitcoin ETF approval, US Securities and Exchange Commission (SEC) Chair Gary Gensler has warned crypto investors to ‘”be cautious,” in a post to X (formerly Twitter). Moreover, Gensler reiterated the “serious risks” involved in digital asset investment

The statement arrived a day after Gensler highlighted the “fraudsters” seeking to exploit the industry. In a similar post to the social media platform, he warned about potential scams awaiting retail investors who do not proceed with immense caution. Still, the agency is expected to issue approvals to most of the more than a dozen Spot Bitcoin ETC applications.

Also Read: Valkyrie Founder Expects Spot Bitcoin ETF Approval Wednesday

SEC’s Gensler Once Again Calls for Caution from Crypto Investors

Throughout his tenure as the agency’s Chairman, Gary Gensler has had a rather combative relationship with the digital asset industry. Derived from his enforcement-first approach to regulation, he has certainly come under scrutiny. Subsequently, amid impending Spot Bitcoin ETF approvals, he has once again highlighted the potential dangers of the market.

Specifically, SEC Chairman Gary Gensler took to X to warn crypto investors to “be cautious.” Indeed, he issued the warning to all who are “considering an investment involving crypto assets.” Additionally, he noted that these tokesn “may be marketed as new opportunities but there are serious risks involved.”

Also Read: BlackRock Lines up $2 Billion Capital for Bitcoin ETF, Sources Say

Just a day before this warning, Gensler posted regarding “fraudsters” seeking to “exploit the rising popularity of crypto assets to lure retain investors into scams.” Moreover, he noted the risks and volatility that are tied to these investments. He also claimed that “major platforms” are insolvent, adding another layer of concern.

The increased warnings appear to be issued due to the growing hype around a Spot Bitcoin ETF in the United States. Indeed, the SEC is poised to approve a lot of the applications this week. Industry-wide experts have predicted that such approvals could come as early as Wednesday, with trading likely to start as soon as Thursday morning.

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