SEC President Warns About Cryptocurrencies and Former President Says ETF Approval Is “Inevitable.”

SEC President Warns About Cryptocurrencies and Former President Says ETF Approval Is “Inevitable.”

As the market awaits the US Securities and Exchange Commission’s (SEC) decision on approving Bitcoin ETFs, the US agency’s president has issued warnings to cryptocurrency investors.

In a series of to inform on Twitter on Monday afternoon (8), Gary Gensler highlighted that many companies offering investments in cryptocurrencies may not be adhering to the laws.

Gensler highlighted the risks and volatility of cryptocurrencies and cited cases of insolvency and loss of value on major platforms.

“Investments in cryptocurrencies can be risky and often volatile. Several platforms and assets have become insolvent and/or have lost their value. Investments in cryptocurrencies remain subject to significant risks.” — he said.

Additionally, Gensler warned of scams including fake cryptocurrencies, pyramid schemes and outright theft by project promoters who disappear with investors’ money.

“Scammers continue to exploit the growing popularity of cryptocurrencies to lure private investors into scams. These investments are still rife with fraudulent currency offers, Ponzi and pyramid schemes, and outright theft where a project promoter disappears with investors’ money.” — rounded.

SEC has until the 10th to approve Bitcoin ETFs

The SEC chairman’s messages provide no direct clues about the agency’s decision regarding the approval of Bitcoin ETFs. However, the comments highlight the SEC’s cautious stance on sector risks.

The concerns expressed by Gensler about the lack of compliance and the frequency of fraud in the marketplace could be influential factors in the SEC’s final decision.

The decision on the approval of Bitcoin ETFs, which will be made next Wednesday (January 10), will be an important indication of the direction the US regulatory agency will take, and of the position of SEC president . can propose a postponement.

Nevertheless, investors responded to the comments, arguing that the messages could be an indication that the SEC wants investors to start investing in Bitcoin through SEC-regulated platforms, i.e. future ETFs.

For industry experts, the agency should approve ETFs in the United States, while Bloomberg’s Eric Balchunas says there is only a 5% chance the SEC will disapprove or defer Bitcoin funds.

Approval of Bitcoin ETFs is ‘inevitable’

While the current chairman of the SEC issued a warning to cryptocurrency investors, the agency’s former chairman made an impactful statement about the future of Bitcoin exchange-traded funds.

Jay Clayton, known for his role in regulating the financial markets, stated that the approval of a spot Bitcoin ETF is “inevitable,” and that “there is nothing left to decide.”

Clayton emphasized that the Bitcoin trading market has evolved substantially, becoming more robust and efficient and overcoming challenges previously seen as barriers to its regulatory adoption.

I think approval is inevitable, there is nothing left to decide The Bitcoin market is robust and effective enough. It’s much better today than it was five years ago.” — he said.

Furthermore, the former SEC chairman pointed out that technological advances in areas such as custody, asset creation and redemption are paving the way for this big step not just for Bitcoin, but for the financial industry as a whole.

He further emphasized that the infrastructure needed to support a Bitcoin ETF is almost ready.

With a decision from the SEC expected late Wednesday, the financial market is paying attention. According to reports from Bloomberg, spot Bitcoin ETFs, if approved, could list and begin trading as early as the next business day, marking a turning point for traditional investors seeking exposure to Bitcoin through regulated investment vehicles.

Source: Live Coins