SEC Chairman Gary Gensler recently said that Bitcoin is not considered a security. The statement comes amid growing pressure from lawmakers and the crypto industry for more regulatory clarity.
Bitcoin Confirmed as a Commodity by Gary Gensler
Gensler stressed that he and his predecessor have always maintained this position. According to him, Bitcoin is rather classified as a commodity, which distinguishes it from other digital assets that can be considered securities. This distinction is crucial because it determines the applicable regulatory framework and disclosure obligations for companies and investors.
One of the reasons why Bitcoin is not considered a security is its decentralized nature. Unlike other cryptocurrencies, there is no central entity or group of people that controls Bitcoin or directly benefits from it. This makes it more similar to assets like gold or silver, which are also classified as commodities.
Gensler also mentioned that investors can now buy Bitcoin through ETFs traded on the Nasdaq and NYSE. These ETFs provide a new avenue for traditional investors to gain exposure to Bitcoin without having to deal with cryptocurrencies directly.
Investor protection a priority for the SEC
Gensler insisted that the rest of the crypto sector remains under strict oversight. He stressed the importance of investor protection and the need to build trust in financial markets. According to him, many crypto companies are trying to evade regulation by pretending it doesn’t exist, when in reality, clear rules are already in place.
Gary Gensler’s stance on Bitcoin brings some clarity to a regulatory landscape that is often perceived as unclear. By recognizing Bitcoin as a commodity and promoting ETFs, he paves the way for broader adoption while maintaining strict vigilance over the rest of the cryptocurrency sector.
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