SEC Chair Gary Gensler: Crypto Lenders Offered ‘Too Good to Be True’ Returns
Securities and Exchange Commission Chair Gary Gensler called out cryptocurrency lending companies for offering unrealistic yields today in an interview with Yahoo Finance. “If it’s too good to be true, then maybe it is,” Gensler said, referencing yields on crypto deposits ranging anywhere from 4% to 20% that were offered by numerous companies and marketed towards investors as safe. “There may be a lot of risk embedded in that.” His comments come amid a market crash in crypto that has sent multiple lending platforms filing for bankruptcy, including Voyager Digital and most recently Celsius Network. Despite pausing customer withdrawals, Celsius’s website says customers can earn yearly returns of up to 18% on deposits for certain cryptocurrencies and Voyager touts 12% rewards on deposits for a relatively unknown token called KAVA, according to their website.