Gensler: BTC and ETH not securities

In a newly surfaced video, Securities and Exchange Commission (SEC) Chairman Gary Gensler expressed that he does not believe Bitcoin (BTC) or Ethereum (ETH) qualify as securities. This statement comes after significant speculation regarding regulation of the rapidly growing cryptocurrency industry.

The SEC is a regulatory agency tasked with ensuring that companies and individuals comply with federal securities laws. As such, the agency is responsible for determining whether digital assets qualify as securities, and is especially concerned with securities offerings made via blockchain technology.

Gensler, who took over leadership of the SEC earlier this year, has long been known as a cryptocurrency skeptic. However, he has also been an advocate for increased regulation of the industry, signaling that under his leadership, the SEC will take a more active role in regulating the digital asset market.

The recent video, which was recorded in 2018 while Gensler was still teaching at the Massachusetts Institute of Technology, adds some clarity to his position on the classification of BTC and ETH. When asked directly whether he believes the two cryptocurrencies should be treated as securities, Gensler responded with a simple “no.”

Gensler went on to explain that his reasoning for not considering BTC and ETH securities is based on the fact that they are decentralized, and do not rely on any central figure or organization in order to function. He also pointed out that they are not being offered through initial coin offerings (ICOs), which are often seen as a vehicle for securities offerings.

The statement from Gensler is notable for several reasons. First, it signals that the SEC may not be taking a heavy-handed approach to the regulation of Bitcoin and Ethereum. This news will be welcomed by many in the cryptocurrency industry, who have long been frustrated by the lack of regulatory clarity surrounding digital assets.

However, it is worth noting that Gensler’s comments do not necessarily mean that the SEC will not be involved in regulating the two cryptocurrencies. In fact, Gensler has made it clear that he believes all digital assets fall within the agency’s purview, regardless of whether they are considered securities.

Instead, Gensler’s comments may be reflective of a broader shift in the SEC’s approach to the regulation of digital assets. Over the past year, the agency has been increasingly focused on combating fraud and other illegal activities in the digital asset market, rather than targeting legitimate companies and investors.

One potential reason for this shift is the increasing mainstream adoption of cryptocurrencies. As more institutional investors enter the market, regulatory clarity becomes increasingly important. The agency’s recent focus on rooting out fraud and illegal activity may be aimed at making the industry more palatable to traditional investors.

It is also worth noting that Gensler’s comments may not necessarily be the final word on the classification of BTC and ETH. The agency’s position on the matter could change in the coming months or years, as the digital asset market continues to evolve.

In the meantime, the SEC will likely continue to focus on regulating the digital asset market in general, regardless of whether individual cryptocurrencies are classified as securities. This may include increased scrutiny of ICOs, as well as a focus on preventing fraud and other illegal activities in the market.

Overall, Gensler’s statement that BTC and ETH are not securities is a positive development for the cryptocurrency industry. It signals that the SEC may be taking a more measured approach to regulation, rather than seeking to stifle the industry altogether. However, it is still important for investors and industry participants to stay informed of the latest regulatory developments, as the industry continues to evolve at a rapid pace.