Regulation

Gary Gensler Insists There Are Crypto Regulations, Says Bitcoin Is Not A Security

Published

8 hours ago

September 26, 2024

The US Securities and Exchange Commission (SEC) Chair Gary Gensler has asserted that crypto regulations exist in the United States. He insinuated that stakeholders in the crypto industry do not like these regulations, which is why they claim they do not exist. Meanwhile, Gensler affirmed that Bitcoin is not a security.

Gary Gensler Says There Are Crypto Regulations

The SEC Chair mentioned during an interview on CNBC that crypto regulations exist in the United States. He added that “not liking the rules is not the same as, there aren’t rules,” alluding to industry stakeholders who continue to demand regulatory clarity in the country.

Gary Gensler remarked that many firms profited from the public’s interest in crypto without proper disclosures. The SEC Chair also raised the “classic securities” case of how many of these firms are raising money, which brings such situations under the Commission’s purview since they are concerned with investor protection.

His comments come following the SEC Congress hearing in which he and the five Commissioners appeared before the US House Financial Services Committee. Rep Patrick McHenry claimed that the Commission needed to focus on capital formation and providing crypto stakeholders with clarity rather than “taking ad hoc action to sue people and make headlines.”

Meanwhile, Coinbase recently appealed the SEC’s denial of its 2022 rulemaking petition. The exchange is one of the crypto stakeholders that has continued to pressure the Commission to provide a clear legal framework for the industry.

Bitcoin Is Not A Security

Gary Gensler stated during the interview that Bitcoin is not a security. He noted that this is a view he and his predecessor Jay Clayton have shared right from the onset. Gensler and the SEC’s view that Bitcoin isn’t a security is what easily led to the launch of the Spot Bitcoin ETFs in January earlier this year. Although Gensler didn’t comment about Ethereum, the second-largest crypto token by market by cap is also belived not to be a security.

The SEC’s approval of the Spot Ethereum ETFs indicated that the Commission considers ETH as a commodity just like Bitcoin. Meanwhile, the regulator had for a while now referred to several altcoins as securities. However, in a recently filing in its case against Binance, the SEC stated that it regrets the confusion it has caused with classifying crypto assets as ‘crypto asset securities.’