Gary Gensler reiterated the SEC’s stance on Bitcoin while once again criticizing the crypto sector for its pervasive non-compliance.
During an appearance on CNBC’s Squawk Box on Thursday, Sept. 26, U.S. Securities and Exchange Commission chair Gary Gensler asserted that Bitcoin (BTC) is not classified as a security. This declaration is not new; the SEC has previously acknowledged the regulatory status of the leading crypto token. SEC filings have identified this $1.2 trillion asset as a non-security commodity.
Under Gensler’s leadership, the agency has greenlit approximately 10 spot Bitcoin exchange-traded funds (ETFs) and has accepted Bitcoin on American exchanges, including the Nasdaq.
Similarly, Ethereum (ETH) exchange-traded funds have been approved, but the SEC has taken a more contentious stance regarding the second-largest cryptocurrency. The SEC has launched numerous investigations targeting Ethereum service providers such as Consensys, Uniswap, and trading platforms like Coinbase.
Additionally, the SEC and Gensler have not classified Ethereum as either a security or a non-security, all while enforcing federal regulations on participants within the Ethereum ecosystem.
U.S. lawmakers, especially within the House of Representatives, have criticized Gensler for contributing to confusion in the digital asset arena and for coining terms like “crypto asset security” in major legal actions.
Earlier this week, Gensler faced backlash for hindering blockchain innovation and fostering chaos in the crypto market during a Congressional hearing that included all five SEC commissioners.
At the hearing and in the CNBC interview, Gensler reiterated claims regarding non-compliance and insufficient disclosures within the crypto industry. He emphasized that while regulations are in place, many participants have overlooked these guidelines and sought preferential treatment.
His testimony conflicted with statements made by Robinhood Markets’ chief legal counsel, Dan Gallagher. At a different hearing the previous week, Gallagher stated that the SEC had been largely unresponsive to Robinhood’s registration efforts.
Gallagher, a former SEC staff member, noted that the agency’s personnel either delayed responses or, in some instances, did not respond at all. Commissioner Hester Peirce hinted at similar experiences within the regulator and echoed Gallagher’s sentiment that Congress should intervene to resolve the policy void created by the SEC’s deliberate inaction.
