SEC Chair Gensler confirms Bitcoin and Ethereum are not securities
Outgoing SEC Chair Gary Gensler has clarified that the U.S. Securities and Exchange Commission has never classified Bitcoin (CRYPTO:BTC) or Ethereum (CRYPTO:ETH) as securities.
In interviews with Yahoo Finance and CNBC, Gensler emphasised that neither he nor his predecessor had labeled these cryptocurrencies as securities.
“My predecessor and I, we’ve never said Bitcoin is a security. We haven’t said Ethereum is a security,” he stated, aiming to dispel misconceptions about their regulatory status.
This clarification comes despite a previous filing from April 2024, which indicated that the SEC had considered Ethereum an unregistered security trading in violation of laws.
Gensler maintained a clear distinction between Bitcoin and other cryptocurrencies, asserting that Bitcoin does not fall under securities laws, unlike many other tokens in the market.
He explained that his cautious language was necessary due to the complexities of regulatory classifications.
While acknowledging Bitcoin's speculative nature, Gensler compared it to gold, suggesting that its growing popularity could eventually position it as a stable asset.
“These other thousands of projects need to show their use case and show that they actually have fundamentals underlying them, or they won’t persist,” expressing his scepticism about the value propositions of many other cryptocurrencies.
Gensler's tenure was marked by a rigorous enforcement approach to crypto regulation, which has drawn criticism for focusing more on penalties than on establishing clear guidelines for the industry.
When questioned about the SEC's regulatory framework, Gensler shifted responsibility to Congress for creating new rules for the crypto sector.
He also addressed a recent appellate court's request for the SEC to provide clearer explanations regarding its regulatory decisions.
“Not liking the law and not liking rules doesn’t mean there aren’t laws and rules,” he remarked.
As Gensler prepares to leave office, his comments highlight ongoing debates surrounding cryptocurrency regulation and the need for clarity in defining asset classifications.
At the time of reporting, the Bitcoin (BTC) price was $100,092 and the Ethereum (ETH) price was $3,402.34.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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