Gary Gensler Clarifies: Bitcoin Is Not A Security... But A Commodity!

The SEC Chairman, Gary Gensler, recently stated that Bitcoin is not considered a security. This statement comes amidst increasing pressure from lawmakers and the crypto industry, who are calling for more regulatory clarity.

Bitcoin Confirmed as a Commodity by Gary Gensler

Gensler emphasized that both he and his predecessor have always maintained this position. According to him, Bitcoin is classified more as a commodity, which distinguishes it from other digital assets that may be considered securities. This distinction is crucial as it determines the applicable regulatory framework and the 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 who control Bitcoin or benefit directly 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 via ETFs traded on Nasdaq and NYSE. These ETFs offer a new access route for traditional investors looking to gain exposure to Bitcoin without directly managing cryptocurrencies.

Investor Protection, a Priority for the SEC

Gensler stressed that the rest of the crypto sector remains under strict surveillance. He emphasized the importance of investor protection and the need to build confidence in financial markets. According to him, many cryptocurrency companies try to evade regulation by claiming it doesn’t exist, while in reality, clear rules are already in place.

Gary Gensler’s position on Bitcoin provides some clarity in a regulatory landscape often perceived as murky. 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.