The U.S. Securities and Exchange Commission chair called crypto “the Wild West” and urged troops not to “get caught up in the FOMO.”
US Securities and Exchange Commission (SEC) Chairman Gary Gensler has found a new audience for his crypto-skeptical pep talks – the US military.
On Jan. 11, the United States military approved Twitter’s first opportunity of 2023, and Gensler and SEC Commissioner Caroline Crenshaw are participating in the discussion to provide financial advice on how and where the US military should invest their money.
Sergeant Lawrence Holmes said that “there are soldiers who want to reinvest these funds [as] crypto assets” asking the couple about the risks of investing in crypto. “It’s the Wild West,” Gensler replied, adding that “most of the 10,000 or 15,000 signs will fail.”
“History tells us that there is not much room for a small currency, which means, you know, we have the US dollar and Europe has the euro and such.”
He urged the military not to “get into FOMO – the fear of missing out”, saying that cryptocurrencies are “highly speculative” and “unacceptable”.
“Most of them don’t follow the safety rules, but they should.”
Gensler went on to show that if G.I sees a return that “is too good to be true – it could be,” whether it is crypto-based or not.
Crenshaw added to Gensler’s statement that cryptocurrencies are “notorious for scams” and said:
“They claim to have transparency, what’s in the blockchain is clear but the rest of it is unclear and I think there have been some examples of that recently.”
He said that those considering crypto investments should pay “special and careful attention” to the percentage of their portfolio dedicated to digital assets. Regarding the SEC’s recommendations on where the US military should invest their dollars, Crenshaw told the military to invest “as much as possible” in the Thrift Savings Plan (TSP) – a government-sponsored retirement plan for federal employees and service members.
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