The Chairman of The Securities and Exchange Commission, Gary Gensler says that Bitcoin is the only digital asset that he is willing to classify as a security. Gensler made the statement during a CNBC Squawk On The Street interview on June 27.
Gensler said that for most cryptocurrencies, people invest in them because of the profit that they anticipate. He highlighted the fact that there has been a consensus among his predecessors that BTC is not a security, adding that he is of the same opinion.
Most Tokens Are Securities
He said that some of these hundreds of tokens are securities while some, particularly Bitcoin is a commodity.
Gensler said that many cryptocurrencies do not comply with the appropriate regulatory requirements. He cited the need for investor protection on account of this.
He said that the SEC is working with CFTC to ensure that the digital assets space is safe for investors.
“#Bitcoin is the only one I’m willing to say is a commodity”
— Documenting Bitcoin 📄 (@DocumentingBTC) June 27, 2022
In his words,
“This is a highly speculative asset class, we’ve known this for some time: the ups and downs of the speculative asset class [such as] Bitcoin and hundreds of tokens. And with many of these tokens, the investing public is hoping for a return. Many of these crypto assets have the attributes of security. Some of them are under the Securities and Exchange Commission, some, like Bitcoin, and that’s the only one I’m willing to say… and my predecessors and others say it’s a commodity.”
BTC Price Stabilizing
Gensler made the comment even as the price of Bitcoin seems to have stabilized above $20k after weeks of uncertainty regarding the direction of the price of the asset.
The interview with CNBC puts to rest, speculations on the status of Bitcoin with respect to regulatory overview. The implication is that Bitcoin is considered a commodity under the purview of the Commodities Futures Trading Commission (CFTC).
Last May, Gensler said that there is no reason to treat the crypto market differently or preferentially than others. He said that the SEC is a technology neutral agency.