U.S. SEC chair Gensler says investors should beware of crypto returns that seem “too good to be true”
2022.06.14 16:26
FILE PHOTO: U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler testifies before a Senate Banking, Housing, and Urban Affairs Committee oversight hearing on the SEC on Capitol Hill in Washington, U.S., September 14, 2021. REUTERS/Evelyn Hocks
WASHINGTON (Reuters) – U.S. Securities and Exchange Commission (SEC) Gary Gensler said on Tuesday that investors should beware of promised returns from crypto lending platforms and products that seem “too good to be true.”
The Wall Street watchdog’s comments come a day after the world’s largest cryptocurrency fell 15% on Monday, its sharpest one-day drop since March 2020.
“We’ve seen again that lending platforms are operating a little like banks. They’re saying to investors ‘Give us your crypto. We’ll give you a big return 7% or 4.5% return.’ How does somebody offer (such large percentage of returns) in the market today and not give a lot of disclosure?” Gensler said during an industry event.
“I caution the public. If it seems too good to be true, it just may well be too good to be true.”
