SEC Chairman Gary Gensler made new statements about cryptocurrencies while eyes turned to Wednesday for a possible spot Bitcoin ETF approval.
Amid cryptocurrency market investors’ expectations for a spot Bitcoin ETF approval from the US Securities and Exchange Commission, the institution’s president, Garry Gensler, announced a new update on cryptocurrencies via his official Twitter account. shared.
Gary Gensler, who has repeatedly warned about the risks of cryptocurrencies in the past period, listed 3 points that those considering investing in cryptocurrencies should keep in mind.
Laws are not followed
Providers of crypto asset investments/services may not comply with applicable laws, including securities laws. Crypto asset investors should understand that they may be deprived of important information and protections in connection with their investments.
Cryptocurrencies are risky
Investments in crypto assets can be extremely risky and are often volatile. A number of major platforms and crypto assets have gone bankrupt or lost value so far. Investments in crypto assets remain subject to significant risks.
Full of scams
Scammers continue to take advantage of the growing popularity of crypto assets to lure retail investors into scams. This means that crypto assets continue to be rife with fraud, such as fake coin offerings, ponzi and pyramid schemes, and outright theft where a project backer disappears with investors’ money.
These statements by SEC Chairman Gary Gensler created doubt on the eve of the spot Bitcoin ETF decision. While major participants in the cryptocurrency market are looking at an approval as a given, the SEC is due to make a final decision on Wednesday, January 10.