During a hearing before the US Congress, SEC Chairman Gary Gensler reaffirmed that Bitcoin is not a security. However, he refrained from calling it a commodity. Which leaves doubt as to the exact classification of this flagship crypto.
The president of the SEC is strongly criticized by the US Congress
Bitcoin, the SEC president’s pet peeve? The situation is becoming increasingly complicated for Gensler as the crypto industry continues to face regulator crackdowns. Indeed, the American Congress strongly criticized him because of his vague positions on the status of Bitcoin.
Do you think that Bitcoin is not a security, is this true? That’s the question asked by Congressman Patrick McHenry, which Gensler faced. The chairman of the SEC then asserted that Bitcoin is not a security. He mentioned the “ Howey Test“, a set of criteria that determine whether an asset is a security. According to him, Bitcoin did not meet these criteria.
On the other hand, he could not clearly confirm whether the flagship crypto was a commodity. Indeed, the MP asked whether Bitcoin, which is therefore not a security, should be considered a commodity. But Gensler could not confirm this.
These hesitations by the head of the SEC before Congress cast doubt on the classification of the largest crypto on the market.
Bitcoin in regulatory limbo
The uncertainty surrounding the regulation of Bitcoin (BTC) is impacting its price and investor confidence.
While some hope that clear regulations could bring increased legitimacy to crypto, others fear that overly strict regulations could dampen its adoption and growth potential. Thus, the status of Bitcoin remains in a period of uncertainty, awaiting more precise directives from American regulators.
Regarding its value, the Bitcoin price showed some volatility yesterday. In fact, it briefly reached the $28,800 mark. Until the regulatory situation is clarified, the flagship crypto risks experiencing further consolidation.
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