SEC chief says investors should not be concerned about cryptocurrency lending

WASHINGTON Reuters -- U.S. Securities and Exchange Commission SEC Gary Gensler said on Tuesday that investors should not be concerned with promised returns from cryptocurrencies lending platforms and products that seem too good to be true. The Wall Street watchdog said on Monday that the world's largest criptome 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 criptocurrency.' We'll give you a big return of 7% or 4.5%. How can someone give a lot of disclosure when they offer huge returns in the market today? Gensler said during an industry event.

I warn the public. If it seems too good to be true, it may just be too good to be true.