Chairman of the US Securities and Exchange Commission (SEC), Gary Gensler, has discovered a new audience for his crypto-skeptical speeches: The U.S. Army.
Gensler and SEC commissioner Caroline Crenshaw participated in the U.S. Army’s first Twitter Space of 2023 on January 11 and offered financial advice on how and where U.S. soldiers could invest their money.
When questioning the duo about risks associated with crypto investments, Sergeant Lawrence Holmes said, “there are soldiers that search for those alternative investments [such as] crypto assets.”
Gensler responded, “It’s the Wild West,” adding, “Most of these 10,000 or 15,000 tokens will fail.” he further added, “History tells us there’s not much room for micro currencies, meaning, you know, we have the U.S. dollar and Europe has the euro and the like.”
He advised soldiers not to “get caught up in the FOMO,” saying cryptocurrencies are “highly speculative” and “non-compliant.”
Gensler further advised that if the G.I.’s see a yield that’s “too good to be true — it probably is” regardless of whether it’s crypto-based.
In response to Gensler’s remarks, Crenshaw asserted that cryptocurrencies are noted for their frauds and that they “claim to be transparent; what’s on the blockchain is transparent; the rest of what’s there is not transparent, and I think there have been some examples of that recently.”
She advised individuals who are considering a cryptocurrency investment to carefully evaluate the percentage of their portfolio they allocate to digital assets.
Addressing the SEC’s advice on where U.S. Army personnel should invest their money, Crenshaw recommended troops to invest into a Thrift Savings Plan (TSP), a government-sponsored retirement plan for federal employees and service members.
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