SEC warns of crypto earnings that are “too good to be true”
The slump in the crypto market and Bitcoin could not remain without a reaction from the SEC. On Tuesday, U.S. Securities and Exchange Commission chairman Gary Gensler reminded investors of the dangers beneath crypto platforms’ promises.
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Within the framework of the industry event, the official took the opportunity to warn the public once more. According to him, the SEC has again received confirmation that the operation of crypto-lending platforms is somewhat like the functioning of banking institutions.
They tell investors: “Give us your cryptocurrency. We will give you a large profit of 7% or 4.5%.” How does someone offer (such a high profitability percentage) in the market today and not reveal much information?
asked the chairman of the SEC.
Gary Gensler. Source: https://www.sec.gov
Amid the collapse of BTC, Ethereum, and other digital currencies on Monday, the official reiterated the high volatility of the crypto market and the numerous risks that holders of crypto assets may face:
If this seems too good to be true, it might be too good to be true.
The SEC and CEO Gary Gensler are known for their wary attitude towards cryptocurrencies, which are characterized by high volatility. The Commission regularly invokes the responsibility of cryptocurrency platforms by improving regulatory mechanisms, and the official reminds investors of the most critical risks of digital assets that can lead to their complete loss.
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