U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler said that many crypto assets have securities attributes, but Bitcoin is the only cryptocurrency he is willing to publicly recognize as a commodity.
Gary Gensler reiterated the SEC’s view in a recent interview with “CNBC” – “Bitcoin is a commodity (Commodity, also known as a valuable asset)”, but he was reluctant to comment on the attributes of altcoins such as ether. Thus he said:
This (cryptocurrency) is a highly speculative asset class, we have known that for a long time. When people invest in “Bitcoin and hundreds of other crypto tokens,” like investing in financial assets like stocks, they expect a return.
Gary Gensler emphasized that many “crypto financial assets” have “key attributes of securities” and thus fall under the SEC’s jurisdiction, with the only exception of Bitcoin. He says:
Bitcoin is the only cryptocurrency I would call a “commodity”. I won’t talk about other cryptocurrencies, but the former SEC chairman and others have said that they are a commodity.
Earlier this month, the U.S. Congress passed the Responsible Financial Innovation Act, which aims to encourage “responsible innovation” by integrating digital assets into existing laws and provides greater clarity to the cryptocurrency industry, which lacks regulatory standards s frame.
Under the bill, the SEC and the Commodity Futures Trading Commission (CFTC) will undertake most of the regulatory work, with the formerResponsible for overseeing crypto assets classified as securities, while the latter oversees digital assets recognized as commodities.
Generally speaking, if a cryptocurrency is deemed a security by regulators, it becomes a financial instrument that must be registered with the SEC and subject to strict disclosure regimes before it can be legally sold to the public.
Before Gary Gensler took office, former SEC Chairman Jay Clayton said that Bitcoin andetherCommodities, not securities, but Gary Gensler only mentioned bitcoin in his latest remarks, and has avoided answering questions about ether’s properties in the past.
Since Ethereum issued an ICO in 2014, whether or not Ethereum is a security is still controversial, and this is exactly what the SEC has to say about it.The crux of Ripple’s legal action is that the SEC believes that XRP is an unregistered security, while Ripple believes that since the SEC has stated that “Ether is not a security”, it should also be against Ripple. Coins are treated equally,So it’s not hard to see why Gary Gensler would be reluctant to comment on other cryptoassets.
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