After the submission of applications concerning bitcoin exchange-traded funds, which potentially served as their final request for listing, Gensler communicated with the audience through X (formerly Twitter).
Gary Gensler, chairman of the US Securities and Exchange Commission, warned cryptocurrency investors about the potential allocation of their funds.
Gensler noted that it is highly probable that investors who offer investments in the form of crypto assets are not complying with the established laws and federal securities regulations. Additionally, he informed them that they might be lacking critical information and advised them to take a variety of other precautions concerning their investments.
Considering previous experiences, this may indicate that Gensler is determined to provide some good and optimistic information. An investor-oriented advisory issued by the SEC’s Investor Education account in 2021 was essentially identical. That occurred on October 14, one day before the initial application for a bitcoin futures ETF became operational.
Gensler issued his cautionary statement precisely three hours after Grayscale, ARK, 21Shares, BlackRock, Bitwise, VanEck, Wisdomtree, and additional entities submitted their modified S-1 amendments. It was the final phase for the involved companies, following which the SEC would either grant or deny its approval of the applications.
The SEC has until January 10 to pronounce the Bitcoin ETF application submitted by Ark and 21Shares.
The statement issued by Gensler is in tandem with his earlier version of crypto bitcoin being an uncertain investment.