Bitcoin is not an investment contract as US SEC Chairman Gary Gensler noted recently in an interview now going viral
In a recent CNBC interview, U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler doubled down on his take on Bitcoin (BTC). He affirmed that the digital asset is not classified as a security under U.S. law.
“Look, not liking the rules is not the same as, there aren’t rules,” says @GaryGensler on crypto regulation. “I think there’s a lot that have profited off of the public’s interest in this field but profited without the proper disclosures.” pic.twitter.com/DSk6rRm7XZ
— Squawk Box (@SquawkCNBC) September 26, 2024
This clarification reinforces Bitcoin’s unique status among cryptocurrencies. This distinguishes it from many other digital assets that could be subject to SEC regulation due to their security-like attributes.
Gensler Solidifies Bitcoin Commodity Status
During the interview, Gensler reiterated that Bitcoin is not considered a security, echoing the stance of his predecessors. He pointed to the availability of approved spot Bitcoin ETFs during his tenure, noting that this gave investors regulated options to invest in the asset.
Congressman Ritchie Torres once addressed this crypto security issue, arguing that Ethereum should not be classified as a security. Despite this clarity around Bitcoin, Gensler has been criticized for not providing clear legal guidance on other cryptocurrencies.
There has been an ongoing debate over the regulatory status of various digital assets, including ConsenSys’s ongoing lawsuit. This is particularly true as the regulatory landscape for digital assets remains uncertain.
In contrast to the agency’s tough stance, Gensler highlighted the SEC’s effort to regulate the space. He said the agency is committed to ensuring market integrity and investor trust.
Gensler Said ‘Not Liking the Rules Do Not Mean They Do Not Exist’
Gensler emphasized that the long-term viability of the crypto industry hinges on proper regulation and investor protection. He also highlighted the importance of transparency. While investors can choose to support or short crypto projects, they must have access to necessary disclosures.
During the interview, he was confronted with criticism from the crypto industry about the lack of regulatory clarity. However, he pushed back, remarking, “Not liking the rules is not the same as denying that there are rules.”
He pointed to the collapse of major crypto firms and the legal repercussions for several industry leaders, noting that this is clear evidence of the sector’s inherent risks and vulnerabilities.
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