“Bitcoin Is Not A Security”- SEC Chair Gary Gensler
During a recent congressional hearing, Gary Gensler, the head of the US Securities and Exchange Commission (SEC), clarified his position on Bitcoin. Significantly, Gensler expressed that Bitcoin does not qualify as a security under US law. However, his reluctance to label it as a commodity has raised eyebrows and led to further speculation about its categorization.
Crypto Crackdown Continues Despite Controversies
The past few months have witnessed heightened action by the SEC against the digital asset industry. Besides the ongoing debate on Bitcoin’s status, the agency has faced widespread pushback for its assertive actions on other digital assets.
Gensler has held that many cryptos should be classified as securities. Hence, making them subject to US securities laws. This stance continues despite recent legal setbacks, like the verdict on Ripple’s XRP token, deemed not a security. Consequently, the industry remains in a precarious position.
Moreover, Gensler’s ongoing defense of the agency’s aggressive enforcement has led to mounting criticisms. However, he remains unmoved. He argued that there is no reason to exempt the crypto asset securities market from the protections of the traditional securities laws. Additionally, he pointed out the industry’s widespread noncompliance as a significant issue.
Transparency Issues Broaden the Chasm
In the backdrop of these discussions were questions about Gensler’s interactions with FTX, a collapsed crypto exchange, and its founder, Sam Bankman-Fried. Congressman Patrick McHenry criticized Gensler for not being transparent about these dealings, showcasing a broader issue of trust and transparency.
The digital asset industry remains in a state of flux. The future remains uncertain, with key figures like Gensler holding firm beliefs but evading precise categorizations. The industry awaits more explicit directives, which will be pivotal in shaping its trajectory.
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