Gary Gensler: SEC has never determined Bitcoin and Ethereum as securities

Gary Gensler, the outgoing Chairman of the U.S. Securities and Exchange Commission (SEC), affirmed in a recent interview with Yahoo Finance that the SEC has never officially declared Bitcoin or Ethereum as securities. His statement comes amid ongoing debates over whether Ethereum, the second-largest cryptocurrency by market capitalization, should be regulated under U.S. securities laws. SEC's perspective on Bitcoin and Ethereum Gensler emphasizes that neither he nor former SEC Chairman Jay Clayton has ever asserted that Bitcoin is a security. At the same time, he also denies that the SEC has made any statement defining Ethereum as a security. "We have never said that Ethereum is a security," Gensler said. "Investors have approached Bitcoin and Ethereum before securities trading products appeared, and they perceive them differently." This statement further complicates the debate over the classification of Ethereum, especially as the agency has taken strict control measures over the cryptocurrency industry. Legal background and recent actions of the SEC During Gensler's tenure, the SEC has issued subpoenas targeting companies trading with the Ethereum Foundation, while investigating further into the transition to Ethereum 2.0. Some lawmakers have requested clarification on whether Ethereum falls within the SEC's jurisdiction or not. In January 2024, the SEC made a major breakthrough by approving the listing of exchange-traded funds (ETFs) related to Bitcoin and Ethereum. Gensler believes these products bring many benefits to investors, such as lower transaction fees and higher transparency. "Over 70%, possibly up to 80% of the crypto market is related to Bitcoin and Ethereum," he said. "Meanwhile, thousands of other tokens exist based on investors betting on projects lacking complete public information." Gensler's vision of Bitcoin In another interview with CNBC on the same day, Gensler noted that Bitcoin has different characteristics compared to other cryptocurrencies. He compared Bitcoin to gold, calling it a highly speculative asset but with the potential to become "something special in the future." "Bitcoin is a highly speculative and volatile asset, but seven billion people around the world want to trade it. Like gold has existed for the past 10,000 years, Bitcoin could become the symbol of the new digital asset era." Challenges in the crypto industry Despite the SEC's progress in regulating the cryptocurrency market, Gensler emphasizes that thousands of other cryptocurrency projects besides Bitcoin and Ethereum need to comply with public disclosure requirements. He believes that non-compliance of these projects with the law poses significant risks to investors. The future of SEC and the cryptocurrency industry Gensler is expected to resign in the next few days, leaving many unanswered questions about the SEC's approach to the cryptocurrency market. With recent actions such as approving Bitcoin ETFs and Ethereum ETFs, the SEC has started to establish a legal framework for major digital assets, but there are still many challenges in managing this industry comprehensively. Gensler's speech not only reflects his views on the role of the SEC but also lays the foundation for further discussions on the future of the crypto industry in the United States. DYOR! #Write2Earn #Write&Earn $BTC {spot}(BTCUSDT)