SEC Issues Sudden Warning As Bitcoin ETF Race Primes Crypto For A $17 Trillion Earthquake—Boosting The Price Of Ethereum, XRP And Solana

Bitcoin
BTC
and major cryptocurrencies such as ethereum, XRP
XRP
and solana have rocketed in recent months as the market braces for a $17 trillion earthquake.

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The bitcoin price has surged almost 200% over the last 12 months, climbing to levels not seen since early 2022, as a Wall Street race to get a spot bitcoin exchange-traded fund (ETF) to market ramps up—though it’s been suggested BlackRock and others could inadvertantly “destroy” bitcoin.

Now, after a surprise transaction sparked speculation bitcoin’s mysterious founder had “woken up,” the chair of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, has warned bitcoin and crypto companies may not be complying with federal securities laws.

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MORE FROM FORBES‘Satoshi Woke Up’-Legend Of Bitcoin’s Mystery Creator Satoshi Nakamoto Suddenly DeepensBy Billy Bambrough

“Those offering crypto asset investments/services may not be complying with applicable law, including federal securities laws,” Gensler wrote in an X post.

“Investors in crypto asset securities should understand they may be deprived of key information and other important protections in connection with their investment.”

Over the weekend, the SEC reposted its “say no go to fomo” (fear of missing out) blog post on X, telling people that “just because others might buy a particular investment, doesn’t mean it’s the right opportunity for you.”

Some have speculated that the SEC could be following a similar pattern to its approval of a bitcoin futures ETF in 2021, with the SEC issuing a similar warning the day ahead of approving the first U.S. bitcoin futures ETF.

“I know we love to hate on Gensler but I actually think him posting a thread like this before the spot bitcoin ETF is likely approved tomorrow is reasonable,” crypto legal analyst and partner at Brown Rudnick Hailey Lennon posted to X. Blockworks‘ Casey Wagner wrote that “if history is any indication, Gensler’s post could mean positive news is on the way.”

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MORE FROM FORBESHuge $1.5 Trillion ETF ‘Snowball Effect’ Prediction Triggers Sudden Bitcoin Price Surge-Boosting Ethereum, XRP And SolanaBy Billy Bambrough

The SEC is currently weighing around a dozen bitcoin spot ETF applications from some of the world’s biggest asset managers, including BlackRock
BLK
and Fidelity. Meanwhile, crypto asset manager Grayscale is hoping to convert its flagship bitcoin trust into a bitcoin spot ETF, scoring a legal victory that dramatically raised expectations that it will be successful.

The race to finally bring a fully-fledged spot bitcoin ETF to market some 10 years after the Winklevoss twins of Facebook-founding fame first tried to was kicked off by BlackRock in June last year.

Other Wall Street giants, collectively managing around $17 trillion on behalf of clients, followed close on BlackRock’s heels, helping the bitcoin price surge through the second half of 2023 and boosting the price of other major cryptocurrencies including ethereum, XRP and solana.