Bitcoin‘s price is soaring above $45,000, and potential issuers have completed all necessary steps awaiting the SEC’s official approval, expected before the end of Wednesday. Amidst the anticipation, SEC Chairman Gary Gensler, known for his expertise in cryptocurrencies from teaching at MIT, began writing about crypto, a rare move from him.
Just before the SEC’s ETF approval deadline, Gensler shared a list of considerations for those looking to invest in cryptocurrencies. His timing is particularly noteworthy as it coincides with the market’s high tension.
The list includes three points, reiterating his previous warnings. He emphasizes that providers of crypto investments/services may not comply with applicable laws, including federal securities laws, potentially depriving investors of crucial information and protections.
Gensler also highlights the high risk and volatility of crypto investments, mentioning the failure and devaluation of numerous platforms and assets. He warns that investments in crypto assets continue to be subject to significant risks.
Lastly, he cautions investors about the increasing use of crypto’s popularity by scammers to commit fraud, including fake coin offerings, Ponzi schemes, pyramid schemes, and outright theft by project promoters disappearing with investors’ money.