Gary Gensler, the Chairman of the Securities and Exchange Commission (SEC), stated that Bitcoin (CRYPTO: BTC) stands as the only cryptocurrency he would deem a commodity, considering others to be a security.
What Happened: In an interview with CNBC on June 27, Gensler provided his insights on Bitcoin’s classification as a commodity as compared to a security. As reported by MarketWatch, Gensler has previously stated “Many of these tokens…the investing public is hoping for a return just like when they invest in other financial assets we call securities, Many of these financial assets, crypto financial assets have the key attributes of a security.”
Furthermore, recent legislation endeavors to give the Commodity Futures Trading Commission oversight on Bitcoin. Gensler also debated the importance of regulatory agencies to oversee the markets of digital currencies, in an effort to ensure investor protection, transparency, and equality in the market.
The SEC Chairman previously deemed cryptocurrency exchanges to be “operating outside the law,” stating “this speculative asset class, one and a quarter trillion roughly dollars right now, does not have the investor protection that the public needs, and I would contend if this field has any future, what the field needs as well.”
From his previously cited interview, Gensler pivoted his stance on commodities in the cryptocurrency market, having previously said, “Some of the tokens are commodities, Bitcoin being one of them.” In his latest interview, Gensler stated that Bitcoin is the only cryptocurrency he would deem a commodity.
See Also: Security or Commodity? New Crypto Legislation to Provide Clarity
Why It’s Important: The classification of cryptocurrencies has been in a state of flux between being deemed a security and a commodity. The recent bipartisan legislation bill for cryptocurrency regulation defined the terms which would implicate a cryptocurrency being deemed a security or a commodity.
Following the extreme market turbulence experienced by the crypto sector, the past week has finally seen some price stability as Bitcoin has fluctuated between $20,000 and $22,000. The uncertainty looming over the cryptocurrency market, may be the catalyst for regulatory bodies, such as the SEC and the CFTC, to integrate cryptocurrencies into the financial network of the United States.
Photo: Created with an image from Third Way Think Tank on flickr
