SEC chair Gary Gensler has declared that the SEC has never classified Bitcoin or Ethereum as securities.
This statement comes as Gensler wraps up his tenure, just as the Trump administration is gearing up to take the reins.
Gaslighting
During interviews with Yahoo Finance and CNBC, Gensler made it clear that neither he nor his predecessor ever labeled Bitcoin or Ethereum as securities.
“We’ve never said Bitcoin is a security. We haven’t said Ethereum is a security.”
But this seems to clash with a previous filing from April 2024, which suggested the agency believed ETH was an unregistered security trading without proper authorization.
When pressed about why he didn’t clarify the status of these two giants sooner, Gensler explained that he had to tread carefully with his words, and described Bitcoin as highly speculative but acknowledged its potential to become a valuable asset akin to gold in the future.
On the other hand, he wasn’t as kind to other cryptocurrencies, telling that they need to demonstrate real use cases and value before they can stick around.
What about the crusade against the crypto industry?
Gensler’s time at the SEC hasn’t been without controversy, lt me say this in this polite way.
Many critics argue that the agency has been more focused on enforcing penalties than laying down clear rules for crypto regulation.
When asked about this during his CNBC appearance, Gensler shifted the responsibility for creating new regulations onto Congress.
He also pointed out that many crypto projects are simply not compliant with existing securities laws.
What does the law says?
An appellate court even told the SEC to better explain why it rejected Coinbase’s plea for clearer crypto-specific regulations. Gensler responded by saying, there are already regulations.
“Not liking the law doesn’t mean there aren’t laws.”
So, what does this all mean for Bitcoin and Ethereum? With Gensler stepping down and a new administration coming in, we might be on the edge of some quite big changes in how the cryptocurrencies are regulated. Either way, exciting times ahead.
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