News

Gary Gensler Gets Rare Support On Crypto From Former SEC Chair

Former U.S. Securities and Exchange Commission (SEC) Chairman Jay Clayton supported Gary Gensler views on crypto tokens being securities.
Published by
Gary Gensler Gets Rare Support On Crypto From Former SEC Chair

Crypto News: Former U.S. Securities and Exchange Commission (SEC) Chairman Jay Clayton became a subject of criticism on Friday with his support to Gary Gensler over crypto token classification. While the bigwigs of crypto market pinned their hopes on gaining an edge over regulatory agencies through legal proceedings, Clayton said courts are after all not efficient in clearing the air around securities Vs commodities differentiation. He made the comments at the back of Gensler’s failure to answer specifically on whether Ethereum (ETH) is a security or commodity.

Also Read: Banks, VCs, Pension Funds Once Crypto-Friendly Steering Away From Crypto

During the recent House Financial Services Committee hearing, Gary Gensler dodged the question on explaining how crypto firms should comply with the laws. The Committee Chair Patrick McHenry came down heavily against Gensler’s stance that existing securities laws are already compatible with the crypto market.

Advertisement

Jay Clayton Supports Gensler

Speaking about the state of the crypto market and the debate around regulation, Clayton said securities can eventually become commodities but currently many cryptocurrencies appear to be securities. He explained that these assets now give a first mover advantage to early investors in crypto projects, hence acting as securities. During a discussion on CNBC on Friday, he also said,

“The courts are not an efficient place to resolve classification issues around securities and commodities.”

His comments attracted criticism from the crypto community, which was buoyed by the Gensler’s grilling on lack of clarity during the Congressional hearing. Meanwhile, the US regulators are facing fresh wave of angst after the European Union’s voting to pass the Markets in Crypto-Assets (MiCA) regulation. MiCA is touted as the first comprehensive rules for digital crypto asset service providers.

Also Read: Nasdaq-Listed Bitcoin Mining Company Buying Miners Worth Millions

Advertisement

Share
Anvesh Reddy

Anvesh reports major crypto updates around U.S. regulation and market moving trends. Published over 1400 articles so far on crypto and blockchain. A proud dropout of University of Massachusetts, Lowell. Can be reached at anvesh@coingape.com or x.com/BitcoinReddy or linkedin.com/in/anveshreddybtc/

Published by
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Recent Posts

  • News

Senators Reaffirm Commitment to Market Structure Bill After Meeting with Coinbase, Ripple

Senate Democrats and Republican lawmakers have ended separate roundtable meetings focused on the Crypto Market…

October 23, 2025
  • News

How the Crypto Market Could React to the Next Fed Meeting on October 29?

The crypto market has, for a while now, been pricing a potential 25 basis points…

October 23, 2025
  • News

$1.68 Trillion T. Rowe Price Files for First Active Crypto ETF Holding BTC, ETH, SOL, and XRP

Rowe Price has filed for its first actively managed crypto exchange-traded fund (ETF). It is…

October 22, 2025
  • News

Standard Chartered Predicts Bitcoin Could Drop Below $100K Amid U.S.–China Trade Tensions

Standard Chartered analyst Geoff Kendrick has predicted that the Bitcoin price could suffer a significant…

October 22, 2025
  • News

Rising Demand for Verifiable Crypto Ownership Drives Launch of Trezor Safe 7

Crypto ownership is a topic that has been discussed across major forums globally in the…

October 22, 2025
  • News

Robinhood Lists Binance Coin as BNB Outperforms BTC, ETH, SOL YTD By Over 30%

Crypto exchange Robinhood has listed the Binance coin for spot trading for its U.S. customers.…

October 22, 2025