US SEC Chairman Gary Gensler has reiterated his view that Bitcoin is not a security. Gensler mentioned that buying ETF products now is a way of expressing this view.
The SEC Chair remained tight-lipped about his stance on Trump’s proposed strategic Bitcoin reserve, citing the election season.
He also insisted that current laws grant the SEC authority to oversee the crypto market.
Gensler Reiterates Stance on Bitcoin and Crypto
During a CNBC interview, the US Securities and Exchanges Commission (SEC) chairman reiterated his stance on Bitcoin, the flagship cryptocurrency.
Regarding his stance on the crypto asset, Gensler said, “As it relates to bitcoin, my predecessor and I have said that’s not a security.” The SEC Chair added, “You now have a way to express that view—buy into that through exchange-traded products.”
The SEC has approved 12 spot bitcoin exchange-traded funds in the US. These products, traded on regulated stock exchanges, give investors Bitcoin exposure. The approval signaled a change in the regulator’s approach to crypto.
After answering the question about his bitcoin stance, he asked CNBC host Joe Kernen about his view on altcoins.
Gensler asked: “Where are you on what’s called altcoins, there’s 15 or 20 thousand of them. Where are you, Joe?”
Gensler has maintained that many other cryptocurrencies besides Bitcoin qualify as securities under federal securities laws. Therefore, he believes the SEC is within its rights to oversee the crypto space.
The SEC and Gensler’s stance poses a significant challenge to the industry, given the multiple lawsuits against crypto firms on that account.
During his latest CNBC interview, Gensler didn’t fail to emphasize his agency’s position on crypto regulation.
When asked whether the SEC has been regulating crypto by litigation, he argued that existing laws give the watchdog power to regulate the market. Gensler asserted, “Not liking the rules is not the same as that there aren’t rules.”
Gensler Weighs in on Crypto’s Future
The SEC Chair also discussed Bitcoin’s future, saying he doesn’t know where it will be in 20 years. However, he feels crypto will face challenges in building investor trust, given the many fraudsters and scammers in the industry.
Gensler also commented on the number of crypto losses. He said the crypto industry has incurred “tens of billions of losses and bankruptcies” in the past two years. He stressed that no innovation can survive in America without building trust and protecting investors and consumers.
Gensler’s View of Trump’s Proposed Bitcoin Strategy
Gensler remained tight-lipped when CNBC inquired about Gensler’s view on Donald Trump’s idea of setting up a Bitcoin reserve. He said his role does, and the ongoing election season does not permit him to air such views in public.
Gensler stated, “I have a view, but given my role and also that we are in election season, so for the listening public, I will stick to my chalk lines, which are securities markets, and Chairman Powell and others can speak to that.”
Disclaimer: The opinions expressed in this article do not constitute financial advice. We encourage readers to conduct their own research and determine their own risk tolerance before making any financial decisions. Cryptocurrency is a highly volatile, high-risk asset class.
