Gensler, who was known as a Bitcoin advocate during his university years, has been subjected to negative comments from many people with his attitude towards the cryptocurrency sector since the day he took office.
Gensler, who often stated that the sector is "dangerous", recently made similar statements on his social media account.
First, Gensler stated that companies offering crypto services do not comply with federal securities laws, and that individual investors may be exposed to various protections.
Referring to failed cryptocurrency companies, Gensler stated that investors are at risk.
"Investments in crypto assets are extremely risky and these assets are often volatile. Many large platforms and crypto assets have gone bankrupt or lost value. Those who invest in crypto assets continue to be exposed to significant risks."
Gensler emphasized that scammers are targeting individual investors, taking advantage of the popularity of cryptocurrencies.
The crypto community was quick to react to Gensler's post. One user argued that there is a lot of fraud within the industry because the SEC is not clear on compliance.
The cryptocurrency industry is eagerly awaiting the decision on ETFs. Most ETF analysts expect spot Bitcoin ETFs to be approved on January 10. Investors also believe that Bitcoin will start a new rally in the event of a potential approval.
