The chairman of the United States Securities and Exchange Commission (SEC), Gary Gensler, defended and reaffirmed that regulations for crypto assets are already in force in the country. He refuted criticism from industry members, who claim the opposite due to disapproval of existing regulations.
Gensler also highlighted that, contrary to what many may think, Bitcoin does not fall into the category of a security.
During his speech, Gensler argued that several companies have profited significantly from the public interest in crypto assets without making the proper disclosures required by law.
He noted that many of these companies raise funds in a manner that is “classic securities.” This alone justifies SEC oversight to protect investors.
These statements came after a congressional hearing in which Gensler and the five SEC commissioners appeared before the U.S. House of Representatives Financial Services Committee.
Representative Patrick McHenry criticized the SEC, saying the commission should focus more on capital formation and providing clarity to those involved in the crypto market. He also said the SEC should stop engaging in one-off lawsuits to garner media attention.
Meanwhile, Coinbase, one of the leading exchanges in the space, recently appealed the SEC’s decision to deny its 2022 rulemaking request. The company continues to lobby the commission and demand a clearer legal framework for the industry.
SEC clarifies: Cryptocurrencies are not securities
During a recent interview, Gary Gensler reaffirmed his position and that of his predecessor, Jay Clayton, that Bitcoin is not a security.
This clear and stable view of the SEC on Bitcoin ultimately facilitated the launch of spot Bitcoin ETFs in January of this year. As a result, this event marked a major turning point for cryptocurrency in the financial market.
While Gensler did not specifically address Ethereum, the second-largest cryptocurrency by market cap, the SEC’s approval of spot Ethereum ETFs signals that the regulator also views ETH as a commodity, much like Bitcoin.
This contrasts with the SEC’s stance on several other altcoins, which have been classified as securities.
Finally, recently, in a lawsuit against Binance, the SEC expressed regret for the confusion caused by the regulatory landscape it created by classifying certain cryptoassets as “cryptoasset securities.”
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