SEC Chairman Gensler Suggests Students Start Saving Early and “Maybe Earn 8%”; the crypto community was annoyed
Gary Gensler, chairman of the U.S. Securities and Exchange Commission, suggested college students “start saving early, save often” in a video posted Wednesday on Twitter.
“If you saved $5 a week, and you make maybe 8%. If you start while you’re in college, you might have saved $130,000 plus by the time you retire at 65,” Gensler said in the video “But if you instead wait until let’s say you’re 40 years old to start saving, to reach the same number, you’d need about $30 a week.”
While the main point of the video was to encourage savings, Gensler’s example received some backlash on Twitter, particularly from the crypto community, as most high-yield savings accounts are denominated in US dollars. provide annual percentage returns closer to 0.6% or less, according to Bankrate.
Meanwhile, the SEC has repeatedly warned about the risks of crypto lending products that offer much meatier returns, urging such products to be registered as securities.
Nasdaq-listed crypto exchange Coinbase COIN,
recently dropped its plan to launch a crypto lending program after the company said it had received a lawsuit from the SEC. The program aimed to provide customers with a way to earn an interest of approximately 4% APY by lending their holdings of Circle’s stablecoin USDC, a cryptocurrency pegged 1:1 to US dollars, to Coinbase.
The SEC has not responded to a request for comment on this article.
“I’m sure a lot of people would have loved to use Coinbase’s Lend product to earn a decent 4% return on their savings,” commented crypto user “sassal.eth” on Gensler’s video on Twitter . “But now they can’t because you’ve ‘protected’ them against it.”
“It’s a shame that all good investments for savings are being kept out of reach by SEC regulation,” wrote crypto analyst Willy Woo.
Alex Mashinsky, founder and CEO of crypto lending platform Celsius Network, also commented on the video. “I totally agree. Go ahead and start saving as early as possible.”
Regulators in three states, including Texas, New Jersey and Alabama, have taken action against Celsius, accusing the company of offering unregistered securities.