[U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler issues cryptocurrency statement ahead of expected approval of Bitcoin spot ETF]
U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler has issued a clear warning about the risks of investing in cryptocurrencies as a Bitcoin spot exchange-traded fund (ETF) is expected to be approved. Highlights of Gensler's statement are as follows:
1. Legal Compliance: Gensler cautions that entities providing cryptoasset investments or services may not be in compliance with applicable laws, including federal securities laws. He pointed out that investors investing in crypto-asset securities may lack important information and protection measures.
2. High Volatility and Risk: Gensler emphasized that investing in crypto assets is extremely risky and highly volatile. He mentioned some cases of bankruptcy or devaluation of major trading platforms and crypto assets, warning that investors may face significant risks.
3. Risk of fraud: Gensler warned investors to be wary of fraudulent activities in the crypto-asset industry, such as counterfeit currency issuance, Ponzi and pyramid schemes, and common methods such as project supporters illegally occupying investor funds.
The announcement comes ahead of the SEC’s final decision on whether to approve a Bitcoin spot ETF on Wednesday, a decision that could provide traditional financial investors with a new way to invest in Bitcoin and is favored by many analysts.
