SEC Chairman Gensler maintains his position that Bitcoin is not a security
In an interview with CNBC, Gary Gensler, chairman of the Securities and Exchange Commission, reiterated the SEC’s claim that Bitcoin is a commodity; however, he avoided noticing other assets.
Gensler marginalized Bitcoin said it is a digital asset that must be regulated under the Commodity Futures Trading Commission (CFTC).
In response to a question, Gensler said that assets like Bitcoin, as others, including my predecessors, said are a commodity. But added that he just wants to talk about Bitcoin.
Gensler also says that various other crypto-financial assets have the significant functions of a security, noting that the main similarity between the two is the idea that “a person who invests expects a return.”
The place for the framework for cryptocurrencies is two interpretations: one that cryptocurrencies function as securities such as stocks and others that function in the same way as gold. The SEC is a strong believer in the theory that both flagship currencies, Bitcoin and Ethereum are commodities. But in his latest comment, Gensler only mentioned Bitcoins and avoided answering questions related to Ethereum in particular.
The commission’s management had publicly stated that Bitcoin and Ethereum are not securities before Gensler took control of the SEC. It states that Ethereum, launched through an ICO, if assessed by current standards, is an illegal securities offering.
Nevertheless, the debate continues as to whether Ethereum is a security or not. The element has now become a crucial point in the ongoing lawsuit against Ripple over the company’s sale of XRP, which the SEC claims is unregistered security. This may help explain Gensler’s reluctance to comment on Ethereum or other digital assets other than Bitcoin.
While commenting on the issue of regulating cryptocurrencies in the United States, Gensler says that it is basically a combined attempt by the SEC and the CFTC; But when it comes to addressing stack coins, there is also an overlay with bank regulators. He also says that several tokens are probably not in compliance, and that there is still a lot of work to be done to secure investors.
Meanwhile, the crypto market that witnessed one of the worst crashes in history continues to follow the bearish trend. Bitcoin again fell below $ 20,000 and traded at $ 19,228.69 at the time of writing.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while graduating. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge of blockchain helps him provide a unique perspective to his writing
