SEC’s Gensler takes to Crypto Twitter as ETF deadline looms

Hours after many issuers submitted what could be their final registration statements for bitcoin exchange-traded funds, US Securities and Exchange Commission Chair Gary Gensler took to X to meet the crypto audience where they are. 

Gensler on Monday published a three-part thread on X, formerly Twitter, advising crypto-interested investors to be mindful when allocating their funds. 

“Those offering crypto asset investments/services may not be complying [with] applicable law, including federal securities laws,” Gensler wrote. “Investors in crypto asset securities should understand they may be deprived of key info [and] other important protections in connection [with] their investment.”

If history is any indication, Gensler’s post could mean positive news is on the way. The SEC’s Investor Education account in 2021 posted a similar warning to investors on Oct. 14, the day before the first bitcoin futures ETF application became effective. 

Gensler’s warning came about three hours after Grayscale, ARK/21Shares, BlackRock, Bitwise, VanEck, Wisdomtree, Invesco/Galaxy, Fidelity, Valkyrie and Franklin Templeton submitted their amended S-1 filings early Monday, a final step before the SEC moves to approve or deny the products, analysts say. 

The SEC has until Jan. 10 to rule on Ark and 21Shares’ bitcoin ETF application. 

Gensler’s Monday comments are in line with views he has previously expressed about crypto. Bitcoin is a “highly speculative investment,” the agency head has repeatedly said over the past year.

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