During a recent interview Speaking with Bloomberg, Securities and Exchange Commission (SEC) Chairman Gary Gensler highlighted the volatile nature of cryptocurrencies like Bitcoin and Ether, warning investors of the inherent risks.
“This is a highly speculative asset class,” Gensler said, noting the dramatic price swings these digital assets experience.
The conversation also touched on the topic of cryptocurrency regulation.
Navigating the Waves of Cryptocurrency Volatility
Gensler's warnings come amid growing concerns about the stability of cryptocurrency investments after experiencing a roller coaster ride.
“Just look at the volatility of Bitcoin over the past few days,” he pointed out, saying the excitement of investing in these markets may not be for everyone, especially those who are opposed to high-risk financial adventures.
He further highlighted the fundamental issues underlying these digital assets, asking: “How strong is the foundation of this? You know, you get to the top of this hill. What are the foundations like underneath?
Gensler's cautious stance
On the subject of crypto regulation, Gensler remained cautious. He spoke about the complex nature of determining whether digital assets like Ether are securities or commodities.
As U.Today reports, Gensler has repeatedly evaded questions about Ethereum's regulatory status.
He once again emphasized that the SEC's approach depends “on the facts and circumstances of whether the investing public anticipates a profit based on the efforts of others.”