In his outgoing tenure, SEC Chair Gary Gensler clarified that the agency never classified Bitcoin and Ethereum as securities.
A Distinction for Bitcoin and Ethereum
In interviews with Yahoo Finance and CNBC, Gary Gensler stated that the agency never classified Bitcoin and Ethereum as securities. "My predecessor and I, we've never said Bitcoin is a security. We haven't said Ethereum is a security," Gensler declared. Despite this, April 2024 filings show the agency considered Ethereum an unregistered security.
Criticism of the SEC’s Approach
Critics argue the SEC focuses more on penalizing non-compliance than providing clear rules for the crypto industry. Gensler responded by stating the onus for creating new regulatory frameworks falls on Congress. He also highlighted high non-compliance levels among crypto projects.
Response to Court Queries
In response to a court query regarding its refusal to fulfill Coinbase's request for crypto-specific rules, Gensler remarked, 'Not liking the law and not liking rules doesn’t mean there aren’t laws and rules.'
Gensler's statements highlight current regulatory challenges in the crypto space and the need for clear framework conditions for market participants.
