BLK - SEC Chair Calls Crypto 'Dangerous' As Bitcoin ETF Decision Nears

2024-01-09 09:44:16 ET

With a decision on whether to approve spot %Bitcoin () exchange-traded funds (ETF) only a day away, the chair of the U.S. Securities and Exchange Commission (SEC) is again warning investors that %Cryptocurrencies are “dangerous.”

SEC Chair Gary Gensler has taken to social media to issue a warning about the risks of investing in digital assets.

Specifically, Gensler has repeated past claims that the crypto sector is rife with scams and fraud, and said that many companies operating in the space aren't compliant with U.S. securities laws.

“Fraudsters continue to exploit the rising popularity of crypto assets to lure retail investors into scams,” wrote Gensler in his latest post on X, formerly Twitter.

Gensler's comments come just one day before a Jan. 10 deadline for the SEC to rule on whether it will approve spot Bitcoin ETFs for the U.S. market.

Expectations that the SEC will approve the ETFs has the price of Bitcoin up more than 80% since last September and trading above $46,000 U.S.

There is speculation online that Gensler’s latest comments are a final dig at crypto before the agency approves the ETF applications it has received from companies such as %BlackRock (NYSE: BLK), Fidelity Investments, and others.

However, other market observers are warning that the SEC could still reject the spot Bitcoin ETF applications as it has done in the past.

The SEC has launched lawsuits against multiple cryptocurrency exchanges and other companies over the past year, accusing them of operating in violation of American laws.