In a recent interview with CNBC, SEC Chairman Gary Gensler reiterated his stance that Bitcoin should not be classified as a security. He noted that both he and his predecessor have consistently maintained this viewpoint.
Gensler highlighted that investors can now express their confidence in Bitcoin through exchange-traded products (ETPs), especially after the SEC approved 12 spot Bitcoin ETPs in the United States. This regulatory shift indicates a more favorable approach toward Bitcoin while making a clear distinction between it and other cryptocurrencies.
Gensler’s focus on Bitcoin’s unique status reflects the complexities within the cryptocurrency sector. He pointed out the existence of numerous altcoins—estimated to be between 15,000 and 20,000—that operate alongside Bitcoin.
While he asserts that Bitcoin is not a security, Gensler believes that many other cryptocurrencies may meet the criteria set forth by federal securities laws. This distinction poses significant challenges for the cryptocurrency industry, which is currently facing multiple lawsuits and increased scrutiny from the SEC regarding regulatory compliance.
SEC Chair Gary Gensler Reaffirms Bitcoin’s Non-Security Status, Highlights Investor Trust in Evolving Crypto Market
In discussing the future of Bitcoin, Gensler expressed uncertainty about its trajectory over the next two decades. He emphasized the need for trust within the cryptocurrency industry, particularly given the substantial losses and bankruptcies that have occurred recently, totaling “tens of billions” of dollars.
Gensler stressed that for any innovation, including cryptocurrencies, to thrive in the U.S. market, it is essential to create a secure environment focused on investor protection and building trust among consumers.
When asked about Donald Trump’s proposal for a strategic Bitcoin reserve, Gensler chose to remain noncommittal. He explained that his role as SEC Chair, along with the ongoing election season, prevents him from publicly discussing political opinions.
Instead, he maintained that his focus should remain on regulatory matters related to securities markets, suggesting that others, like Federal Reserve Chairman Jerome Powell, would be better suited to comment on such proposals.
Gensler’s remarks indicate the SEC’s evolving approach to cryptocurrency regulation. By clearly defining Bitcoin’s classification while asserting authority over many altcoins, he aims to navigate the challenges presented by a rapidly changing financial environment.
His emphasis on investor protection and market trust highlights the SEC’s broader mandate as it addresses the issues arising from the dynamic and often volatile cryptocurrency market.
