Bitcoin, according to Gary Gensler, chairman of the U.S. Securities and Exchange Commission (SEC), is a commodity.
He highlighted that the SEC, the CFTC, and banking regulators will work together to oversee the cryptocurrency industry.
Bitcoin Is a Commodity, Says Gary Gensler
In an interview with Mad Money host Jim Cramer on CNBC on Monday. SEC Chairman Gary Gensler addressed his views on cryptocurrencies, in particular bitcoin.
“This asset class is very speculative. When asked about cryptocurrencies, Gensler stated, “We’ve known this for a long time.
He explained that when individuals invest in “bitcoin and hundreds of other crypto tokens,” they aspire for a return, “much like when they invest in other financial assets” that are securities, citing the “ups and downs of this speculative asset class.”
Many of these “crypto financial assets,” according to Chair Gensler, contain “the essential characteristics of a security”. “Some of them,” he says, “are regulated by the Securities and Exchange Commission.” He describes the following in contrast, stating what his “predecessors and others had said:
Some are commodities, and the only one I’ll mention specifically is bitcoin. The SEC chairman said that aside from bitcoin, he will not specifically discuss other digital tokens.
Gensler’s assertion concurs with Rostin Behnam. Chairman of the Commodity Futures Trading Commission (CFTC), who declared bitcoin (BTC) to be a commodity earlier this month. Ether (ETH), according to Behnam, is a commodity as well.
Supporters of bitcoin applaud Gensler’s clarification. “Gensler is the 2nd consecutive SEC Chair to proclaim that bitcoin is a commodity, making it all but impossible for this categorization changed in the future,” tweeted digital asset manager Eric Weiss. Very important, in fact.
According to Michael Saylor, the pro-bitcoin CEO of MicroStrategy, bitcoin is a commodity that is necessary for any treasury reserve asset. Politicians, organizations, governments, and institutions may now embrace bitcoin as a technology and digital asset that will expand everyone’s access to property rights and freedom while also helping the economy flourish.
The software company, which listed on the Nasdaq, has collected 129,218 bitcoins for its corporate treasury. Banking, CFTC, and SEC Regulators Work Together on Crypto
Gensler continued by making comments on how the SEC works with the CFTC and banking regulators to oversee the crypto industry. He made a point of pointing out that many crypto coins are currently attempting to operate in a non-compliant manner.
Stablecoins then Brought up by the SEC Chief, who Noted
There is work to be done in the stablecoin space. For the investing public to be truly protected, a lot of effort needs to be done.
Gensler suggested “one rule book” for the regulation of the cryptocurrency industry last week. Cramer brought up Fidelity Investments’ intention to let bitcoin be an option for 401(k) plans during the interview on Monday, a move that has alarmed the Labor Department.
People “feel quite comfortable with the asset that is bitcoin,” according to Mad Money host. “Are we too comfortable with bitcoin?” he questioned Gensler.
Gensler answered, “There’s a lot of danger in crypto, and there’s also a lot of risk in traditional securities markets.
To help safeguard the general public against market fraud and manipulation, the US has market regulators including the CFTC and the SEC.
According to Gensler, there are thousands of crypto tokens on the market that are illegal. He stressed that there must be “full and fair disclosures” when a group of businesspeople sells something to the general public. “That’s what the SEC does,” the chairman emphasized. That’s what we excel at doing.
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