Crypto investors are eagerly waiting for any update from the regulator on the recent applications for spot Bitcoin exchange-traded funds (ETF). Meanwhile, Gary Gensler, the head of the United States Securities and Exchange Commission (SEC), recently shared some tips for crypto investors on the social media platform X (Twitter).
President Joe Biden appointed Gensler to his position in April 2021, but he has not been very supportive of cryptocurrency. He has cracked down on many crypto firms like Binance and Coinbase under his leadership.
In fact, many people think that the SEC is more interested in regulations than innovation because of its enforcement approach. Last year, US Congressman Warren Davidson called Gensler a “tyrannical chairman” and filed a bill to remove him.
Gensler noted that some entities that offer crypto asset investments and services do, or are reluctant to follow the relevant applicable laws, including federal securities rules.
This means that investors in crypto asset securities may not get the necessary information and protections for their investment. He advised investors to verify that the entities they are investing with comply with the necessary laws and regulations.
Moreover, the SEC chairman warned investors about the high rate of fraud in the crypto space. He stated that scammers have been taking advantage of the growing popularity of crypto assets to trick retail investors into scams.
Gensler did not say anything about the proposed ETFs in his post, but many people wonder if this advice means that he will approve the spot bitcoin ETF applications. Also, spot bitcoin ETF issuers have sent their revised S-1 filings to the SEC by the deadline. The agency is supposed to decide on the applications by Wednesday.