Gary Gensler Declared BTC and ETH as Not Securities in 2018
Gary Gensler, the current Chairman of the US Securities and Exchange Commission (SEC), classified Bitcoin (BTC) and Ethereum (ETH) as “not securities” in a 2018 video that recently resurfaced. At the time, he included Litecoin (LTC) and Bitcoin Cash (BCH) in the list, stating they also should not be treated as securities.
Gensler’s Earlier View on Cryptocurrencies
The clip from 2018 showed Gensler making the claim when he served as the Chairman of the Maryland Financial Consumer Protection Commission. However, since assuming his new role as Chairman of the SEC in 2021, Gensler has changed his stance.
In present times, Gensler argues that the only digital asset that classifies as a commodity is Bitcoin. He has not offered a clear declaration about the status of Ethereum since it has neither been categorized as a commodity nor a security by him.
As Gensler has an apparently ambiguous stance towards Ethereum, people are still curious about whether the SEC will categorize it as a commodity or security after three years under Gensler’s leadership.
SEC’s Recent Actions
The SEC’s recent lawsuits against Binance and Coinbase accused the crypto exchanges of providing illegal securities trading services with unregulated assets such as Binance Coin (BNB), Solana (SOL), Cardano (ADA), Polygon (MATIC), and other cryptocurrencies.
Interestingly, the SEC’s lawsuits did not mention the four digital assets that Gensler classified as “not securities” in 2018, nor did they make a clear declaration about Ethereum’s status.
The Current State of Cryptocurrency
While Gensler is now the Chairman of the agency that regulates and oversees the securities markets, his view on digital assets still seems to be evolving. He now sees cryptocurrency as “highly speculative.” However, he has not changed his belief that Bitcoin should be deemed a commodity and classifies everything else as a security.
Furthermore, it is still unclear whether the SEC will categorize Ethereum as a commodity or a security. Since Gensler’s earlier stance on Ethereum is seemingly split, people are eager to know what the SEC’s categorization will be after the recent turn of events.
The cryptocurrency industry is under scrutiny and it faces the harsh actions of organizations like the SEC. It is important to stay aware of the cryptocurrency updates and the recent developments that impact the industry. For reliable news on cryptocurrency and its market, visit Uber Crypto News.