SEC Chair Gensler Warns: Crypto Still Exploited by 'Fraudsters'

• SEC Chair Gensler Criticizes Cryptocurrency Fraudsters Amid Bitcoin ETF Speculations
• Gensler Identifies Cryptocurrency as "Risky" Investment Amid Bitcoin ETF Speculations
• Exploration of Crypto Popularity by Fraudsters

SEC Chair Gensler Criticizes Cryptocurrency Fraudsters Amid Bitcoin ETF Speculations

In a message on X, previously known as Twitter, Gary Gensler, the Chair of the US Securities and Exchange Commission (SEC), voiced his concerns about scammers exploiting the cryptocurrency industry. He emphasized that digital assets continue to be a potentially volatile and risky investment.

These remarks came when the market is anticipateing the approval of the first Spot Bitcoin$42,260 -0.64% ETF in the US. It has been suggested that Bloomberg has revised its prediction and now expects a 95% probability of this approval. The public announcement for such an approval is projected to be released by Wednesday.

Gensler Identifies Cryptocurrency as "Risky" Investment Amid Bitcoin ETF Speculations

The complex relationship between the digital asset industry and the SEC has been well-documented. The regulatory authority has adopted an enforcement-first strategy towards the sector, leading to continuous lawsuits and a somewhat adversarial relationship with its major firms.

However, it is expected that the SEC will greenlight the first Spot Bitcoin ETF in the US. Despite this, the Commission has not refrained from voicing its viewpoint on the industry. Gensler, in particular, has alerted the public to the continuation of scams perpetrated by "fraudsters" in the crypto space.

Exploration of Crypto Popularity by Fraudsters

Gensler elaborated that these deception artists continue to take advantage of the growing popularity of crypto assets to trick retail investors. Such investments are often riddled with fraudulent activities like fraudulent coin offerings, Ponzi and pyramid schemes, and outright theft where the project promoter absconds with investors' money.

Investments in crypto assets also can be exceptionally risky [and] are often volatile," Gensler wrote in a series of posts. Several significant platforms [and] crypto assets have become insolvent and/or lost value. Investments in crypto assets continue to be subject to significant risk.

He further added, "Fraudsters continue to exploit the rising popularity of crypto assets to lure retail investors into scams." This comes at a crucial week for the industry, as the Bitcoin ETF approval, which many are eagerly awaiting, should be announced by Wednesday, as per industry insiders.

Edited by Jonathan Stoker