SEC's Gary Gensler Discusses Crypto Risks with U.S. Army

The Crypto Talks in Camo

It seems the U.S. Army has found a new mission: educating soldiers on the intricate world of cryptocurrency investing. On January 11, 2023, during a Twitter Spaces event, SEC Chair Gary Gensler and SEC Commissioner Caroline Crenshaw made a surprising appearance, swapping military tactics for financial advice, much to the delight of eager soldiers.

Advice from the Front Lines of Finance

Sergeant Lawrence Holmes sparked the conversation by asking about the tangible risks associated with diving into the crypto culture, which many soldiers are tempted to explore.

“It’s the Wild West,” Gensler remarked, suggesting that the crypto landscape is a treacherous one.
He added that out of approximately 10,000 or 15,000 crypto tokens, “most will fail.”
In a fit of practicality, he warned the soldiers against being swept up by FOMO, which is short for the “fear of missing out.”

Beware the Hype

When asked about the potential yields from crypto investments, Gensler’s advice was straightforward: if it sounds too good to be true, it probably is. His skepticism calls attention to the thrill seekers who often overlook reality when it comes to investment opportunities.

Caution: Scams Ahead

Crenshaw echoed Gensler, shedding light on the scam-prone nature of cryptocurrencies. She emphasized that while blockchain claims transparency, the world surrounding it is often anything but clear-cut. Her advice to potential investors was to conduct diligent research and consider the proportion of their assets they are willing to risk on highly volatile digital investments.

Where to Park Those Dollars

For those looking for safer investment grounds, Crenshaw recommended the Thrift Savings Plan (TSP), a federal retirement savings plan tailored for service members and government employees. This suggestion is practical—encouraging military personnel to think long-term while avoiding the quicksand of speculative assets.

In Summary: Think Smart, Invest Smart

With a mixture of cautionary tales and sound advice, Gensler and Crenshaw hope to arm our soldiers with the knowledge they need to navigate a complicated financial battlefield. Remember, in the world of investing, foresight is just as valuable as bravado!