While investors are waiting for spot Bitcoin ETF approval from the SEC, SEC Chairman Gary Gensler made a new post about cryptocurrencies.
Warning investors once again about cryptocurrencies and their risks, Gensler said:
“If you are considering making an investment involving crypto assets, be careful.
“Crypto-asset securities may be marketed as new opportunities, but there are also significant risks.”
Under his post, Gensler also added an article from SEC Investor Education and Advocacy Office Director Lori Schock.
Lori Schock said that she cannot give investment advice regarding Bitcoin or any cryptocurrency, but she can advise on issues to consider when deciding whether it is suitable.
First of all, pointing out that cryptocurrency markets and securities markets are very different, the SEC director stated that there are many advertisements and promotions on social media for BTC and cryptocurrencies.
“Trendy investments are particularly vulnerable to scammers, so be aware that there is a real risk of fraud.
Scammers take advantage of the novelty of an investment opportunity when there is not much history about the product.
“Bitcoin and cryptocurrencies are also targeted by fraudsters.”
Finally, Lori Schock warns investors not to make investment decisions without detailed research: “If you lose money, remember that there is a high probability that the SEC and other regulators will not be able to help you recover your investment, even in the case of fraud.” said.
“Cryptocurrencies may be today's bright new opportunity, but they also pose serious risks.
Proceed with caution, do your research, evaluate your financial goals, and most importantly, don't flip a coin when making investment decisions. “Be sure to do your research before investing to learn how to invest wisely and avoid fraud.”
*This is not investment advice.