Top securities lawyers weighed in on the implications of the recent cryptocurrency warning issued by U.S. Securities and Exchange Commission (SEC) chairman Gary Gensler, noting it could precede the long-anticipated approval of a spot Bitcoin exchange-traded fund (ETF).
Amid the excitement over spot Bitcoin ETF applications submitted to the SEC by hopeful issuers, Gensler cautioned about the risks of cryptocurrency investments.
While the SEC chair's warning became a major topic for discussion within the crypto community, Gensler's message could be a lead-in to the imminent approval of spot Bitcoin ETF and should not be taken lightly because it is what the agency does, "top securities lawyers who deal with the SEC" said as shared by Fox Business' Charles Gasparino.
One of the top securities lawyers reportedly said that Gensler just wanted "to be on record" when he said that "BTC is a speculative, volatile asset," "Other digital assets are not the same as BTC in form," "Governments may take regulatory steps that are bad for BTC," "The ecosystem has been populated by lawbreakers and fraudsters" and that "There are no more SEC impediments to approval."
Breaking: Top securities lawyers who deal with the @SECGov believe @GaryGensler's recent crypto warnings are a prelude to the imminent "spot" $BTC ETF approval and should be taken as a warning because thats what the SEC does.
— Charles Gasparino (@CGasparino) January 9, 2024
As one put it, "he (Gensler) wants to be on record:…
Gensler has become a prominent figure in the cryptocurrency industry, especially during instances when the SEC enforces regulations on certain crypto businesses, which some perceive as unjust or excessive.
"Investments in crypto assets also can be exceptionally risky & are often volatile. A number of major platforms & crypto assets have become insolvent and/or lost value. Investments in crypto assets continue to be subject to significant risk," Gensler said Monday.
"Fraudsters continue to exploit the rising popularity of crypto assets to lure retail investors into scams. These investments continue to be replete w/ fraud- bogus coin offerings, Ponzi & pyramid schemes, & outright theft where a project promoter disappears w/ investors' money," the SEC chairman said in another tweet.
A thread 🧵
— Gary Gensler (@GaryGensler) January 8, 2024
Some things to keep in mind if you're considering investing in crypto assets:
The SEC has until Wednesday to decide on ARK Invest and 21 Shares' spot Bitcoin ETF application. Both the industry and hopeful issuers anticipate the agency's approval of multiple applications.
So far, the SEC continued to remain silent on the proposals but on Monday started publishing notices of filing updates related to spot Bitcoin ETFs, including amendments to eight 19b-4 forms detailing proposed rule changes.
Six of the eight updated filings involved proposed rule changes through which the Cboe BZX exchange intends to list and trade Bitcoin ETFs from Invesco Galaxy, Franklin Templeton, Ark/21Shares, WisdomTree and Fidelity.
