Gary Gensler Insists There Are Crypto Regulations, Says Bitcoin Is Not A Security

As a seasoned crypto investor with a decade of experience navigating the volatile and ever-evolving landscape of digital assets, I find Gary Gensler’s recent comments both reassuring and slightly frustrating. On one hand, it’s encouraging to hear that there are indeed regulations in place for the crypto industry within the United States. This provides a sense of security and legitimacy that has been lacking for many years.


According to the head of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, there are indeed regulations for cryptocurrencies in the United States. However, some players within the crypto industry have expressed displeasure towards these rules, leading them to claim that such regulations do not exist. On a related note, Gensler clarified that Bitcoin does not fall under the category of securities.

Gary Gensler Says There Are Crypto Regulations

In a conversation on CNBC, the Chair of the SEC emphasized that there are already regulations governing cryptocurrencies in the United States. This statement was made in response to some stakeholders within the industry who have been advocating for more clear and definitive regulation in the country, suggesting that dissatisfaction with current rules is not an indication that no rules currently exist.

According to Gary Gensler, several companies have been making profits from people’s interest in cryptocurrencies without providing necessary disclosures. As the chair of the SEC, he pointed out that these companies’ fundraising methods resemble traditional securities cases, which fall under the responsibility of the SEC since they focus on protecting investors.

His comments were made after a hearing at the SEC Congress, where he along with the five Commissioners testified before the US House Financial Services Committee. Representative Patrick McHenry emphasized that the Commission should prioritize fostering capital formation and offering clarity for crypto investors, rather than resorting to individual lawsuits and generating headlines.

Currently, Coinbase is challenging the Securities and Exchange Commission’s rejection of their 2022 rulemaking request. This digital asset exchange is among those pushing the Commission to establish a transparent regulatory structure for the cryptocurrency sector.

Bitcoin Is Not A Security

During an interview, Gary Gensler expressed that Bitcoin doesn’t fall under the category of securities. This perspective, which he shares with his predecessor Jay Clayton, has been held since the beginning. The SEC’s stance on Bitcoin as non-security played a significant role in the launch of Spot Bitcoin ETFs in January this year. While Gensler didn’t explicitly comment on Ethereum, it’s widely believed that Ethereum, the second-largest cryptocurrency by market cap, also doesn’t qualify as a security.

The Securities and Exchange Commission (SEC) approving Spot Ethereum ETFs suggests they view Ethereum similarly to Bitcoin as a commodity. Previously, the SEC categorized numerous other cryptocurrencies as securities. However, in a recent court filing regarding Binance, the SEC expressed regret for any confusion caused by labeling crypto assets as “crypto asset securities.

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2024-09-26 17:21