U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler has reiterated that Bitcoin is not classified as a security, providing crucial clarification amid the ongoing regulatory review of the crypto sector. currencies.
Speaking in an interview on CNBC’s Squawk Box on September 26, Gensler reinforced the SEC’s position that Bitcoin remains a commodity under US law. He said:
“When it comes to Bitcoin, my predecessor and I said it’s not a security.”
The statement follows the SEC’s approval of several spot Bitcoin exchange-traded funds (ETFs), allowing the digital asset to be traded on major US exchanges, including Nasdaq.
Disregard for regulations
Although Bitcoin’s regulatory status is clear, Gensler has criticized the broader crypto industry for its widespread disregard for existing regulations. He accused many market players of ignoring the rules and seeking exemptions.
According to Gensler:
“There are rules in place, but many have chosen to ignore them. »
He added that this non-compliance has contributed to instability and confusion within the market.
In contrast, Ethereum, the second largest cryptocurrency, has faced a more ambiguous regulatory environment. The SEC has yet to classify Ethereum as a security or non-security, leaving projects built on its blockchain under increased scrutiny.
Despite this uncertainty, the SEC approved Ethereum-based ETFs, but simultaneously launched investigations into companies associated with the Ethereum ecosystem, such as Consensys and Uniswap.
Legislators’ concerns
Gensler’s approach to regulating Ethereum has drawn criticism from members of Congress. US policymakers, particularly in the House of Representatives, have accused Gensler of creating confusion by coining terms such as “crypto asset security” in legal actions.
At a recent congressional hearing, lawmakers expressed frustration with the SEC’s handling of crypto regulations, with some saying the agency has stifled innovation. Other SEC commissioners, including Hester Peirce and Mark Uyeda, agreed with the criticism, saying the regulator had failed to provide clarity despite having the tools to do so.
Despite the criticism, Gensler maintained that the future of the crypto industry depends on stronger regulatory frameworks to protect investors and build trust.
The SEC chairman said:
“This area will not persist for long if you fail to build investor confidence in the markets.”
Gensler compared the evolution of cryptocurrencies to the development of other industries, noting that regulations, such as “traffic lights and stop signs,” are essential to progress.
The SEC’s clear stance on Bitcoin contrasts with its ongoing review of other digital assets, leaving the regulatory future of the broader crypto market uncertain.
