SEC Chair Gensler Identifies Risks to Investors from Technological Complexity

SEC Chair Gary Gensler addressed the risks and challenges new technologies present to investors.

In remarks before the 2022 SEC Investor Advocacy Clinic Summit, Mr. Gensler identified risks to investors from (i) the use of digital engagement practices such as "predictive data analytics, behavioral prompts, differential marketing and differential pricing," (ii) the selling, buying or lending of crypto assets, and (iii) complex exchange-traded products such as "leveraged exchange-traded products" and "inverse exchange-traded funds," particularly for older investors and retirees.

Mr. Gensler stressed that no matter the complexity of the investment, "investors deserve the safeguards of our time-tested securities laws."