Gary Gensler has already warned about the potential place of Bitcoin ETF approval in crypto
US Securities and Exchange Commission Chairman Gary Gensler posted a thread on social media platform X (formerly Twitter) as many asset managers await the final word on whether to approve or deny applications for bitcoin (BTC) exchange-traded funds.
In a January 8 X post, Gensler called on crypto investors to keep some things in mind without mentioning the Bitcoin ETF space. According to the SEC chairman, asset managers may not comply with federal securities laws by offering crypto investment vehicles, and crypto “can be exceptionally risky” and “often volatile.”
“Fraudsters continue to use the popularity of crypto assets to lure retail investors into scams,” Gensler said. “These investments continue to be riddled with fraudulent coin offerings, Ponzi and pyramid schemes, and outright theft where the project promoter ends up with investors' money.
1⃣ Providers of crypto asset investments/services may not comply with applicable laws, including federal securities laws. Investors in crypto asset securities should understand that they may be deprived of key information and other important protections related to their investment.
— Gary Gensler (@GaryGensler) January 8, 2024
The SEC chairman's comments at 3:40 pm UTC came two hours after several bitcoin ETF issuers filed amended S-1 filings with the commission — one of the last steps to approve an investment vehicle in the United States. Although it is uncertain at the time of publication whether the SEC will approve one or more at the same time, applications have been filed for Valkyrie, WisdomTree, BlackRock, VanEyck, Invesco and Galaxy, Grayscale, ARK Invest and 21Shares, Fidelity, Bitwise and Franklin Templeton. .
Related: SEC Reissues Crypto ‘FOMO' Warning Amid Hopes in Bitcoin ETFs Space
Many have criticized Gensler's SEC spot crypto ETF despite years of applications from multiple asset managers. Regulators in Canada have allowed firms to list Bitcoin ETFs on exchanges starting in 2021.
Explore ‘Gary Gensler's ETF Dilemma' in our latest comic! Can Gary Gensler keep saying no as ETF decision date approaches? Share your thoughts below! pic.twitter.com/ujSOkz0Sg6
— Cointelegraph (@Cointelegraph) January 4, 2024
S-1 filings are expected on Jan. 8 — part of a deadline from the SEC following multiple 19b-4 filings on Jan. 5. Both have suggested moving forward for the SEC to allow crypto ETF listings on US exchanges, but approval is not guaranteed.
The Commission still has the option to refuse applications, but may need to do so for a different reason than it has used in the past for other EFAs. In August, a federal judge ordered the SEC to revisit Grayscale's BTC ETF application, saying the commission was “arbitrary and frivolous” in banning the investment vehicle.
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