In a January 8 X post, Gensler highlighted concerns about compliance with federal securities laws by asset managers offering crypto investment vehicles, emphasising the inherent risks and volatility associated with cryptocurrencies. He warned against fraud in the crypto space, citing scams involving bogus coin offerings, Ponzi schemes, pyramid schemes, and outright theft.
“Fraudsters continue to exploit the rising popularity of crypto assets to lure retail investors into scams,” said Gensler. “These investments continue to be replete w/ fraud- bogus coin offerings, Ponzi & pyramid schemes, & outright theft where a project promoter disappears w/ investors’ money.”
A thread 🧵
Some things to keep in mind if you’re considering investing in crypto assets:
— Gary Gensler (@GaryGensler) January 8, 2024
Gensler’s remarks at 3:40 pm UTC came amid ongoing evaluations of spot Bitcoin ETF applications from various issuers, including Valkyrie, WisdomTree, BlackRock, VanEck, Invesco, Galaxy, Grayscale, ARK Invest, 21Shares, Fidelity, Bitwise, and Franklin Templeton. The SEC has faced criticism for not approving spot crypto ETFs despite numerous applications over the years, while regulators in Canada permitted the listing of spot Bitcoin ETFs on exchanges in 2021.
Explore ‘Gary Gensler’s ETF Dilemma’ in our latest comic! As the ETF decision day nears, can Gary Gensler keep saying no? Share your thoughts below! 👇 pic.twitter.com/ujSOkz0Sg6
— Cointelegraph (@Cointelegraph) January 4, 2024
On January 8, several spot Bitcoin ETF issuers submitted amended S-1 applications to the SEC, a crucial step towards potential approval. While the outcome remains uncertain, the filings, following 19b-4 submissions on January 5, suggest a positive shift in the SEC’s approach to crypto ETF listings. However, approval is not guaranteed, and the commission retains the option to deny applications, potentially requiring different reasons than those used for previous ETF rejections. In August, a federal judge ordered the SEC to reconsider its denial of Grayscale’s spot BTC ETF application, criticising the decision as “arbitrary and capricious.”