In a post to X (formerly Twitter), US Securities and Exchange Commission (SEC) Chair Gary Gensler has called out “Fraudsters” who continue exploiting crypto. Specifically, the agency’s chairman noted that digital assets can still constitute a risky and volatile investment option.
The statement arrives as many expect a Spot Bitcoin ETF to find its first approval in the United States this week. Indeed, Bloomberg recently upgraded its projection, anticipating a 95% change an approval is granted. Moreover, many expect such an approval to be made public by Wednesday.
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SEC Chair Gensler Calls Out “Risky” Digital Asset Investment Amid Bitcoin ETF Hype
The rather tumultuous relationship between the digital asset industry and the SEC has been well-documented. The government entity has adopted an enforcement-first approach to regulation of the sector. Subsequently, it has led to consistent lawsuits and a rather combative relationship with its biggest firms.
However, the agency is expected to approve the very first Spot Bitcoin ETF in the United States. Yet, it has not shied away from its perspective of the industry. Specifically, SEC Chairman Gary Gensler has warned of “fraudsters” continuing to exploit crypto investors into scams.
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“Investments in crypto assets also can be exceptionally risky [and] are often volatile,” Gensler wrote in a series of posts. “A number of major platforms [and] crypto assets have become insolvent and/or lost value. Investments in crypto assets continue to be subject to significant risk.”
Thereafter, he added, “Fraudsters continue to explore the rising popularity of crypto assets to lure retail investors into scams.” Conversely, the message comes in what is a monumental week for the industry. The Bitcoin ETF approval many are expecting should arrive by Wednesday, according to industry insiders.