Thomas Daniels
Gary Gensler, Chair of the U.S. Securities and Exchange Commission (SEC), reaffirmed the regulatory agency’s stance on Bitcoin during a September 26 interview with CNBC’s Squawk Box. Gensler reiterated that Bitcoin is not classified as a security, aligning with prior SEC filings that have consistently categorized the $1.2 trillion asset as a non-security commodity.
The SEC, under Gensler’s leadership, has approved approximately 10 spot Bitcoin exchange-traded funds (ETFs) and allowed Bitcoin trading on major U.S. exchanges, such as Nasdaq. This continued regulatory acceptance reinforces Bitcoin’s established position within the U.S. financial markets.
However, Ethereum, the second-largest cryptocurrency, has been treated differently. While Ethereum ETFs have been approved in a similar fashion, the SEC has opened several investigations into key players in the Ethereum ecosystem, including ConsenSys, Uniswap, and Coinbase. Despite ongoing enforcement actions, the SEC has not definitively classified Ethereum as a security or non-security. This ambiguous approach has fueled controversy, as Gensler and the SEC have imposed federal regulations on Ethereum-related entities without offering clear guidance on its legal status.
U.S. lawmakers, particularly in the House of Representatives, have criticized Gensler for fostering confusion within the cryptocurrency industry. He has been accused of inventing terms like “crypto asset security” during major legal battles, further complicating the regulatory landscape. At a recent Congressional hearing, where all five SEC commissioners were present, Gensler faced intense scrutiny for allegedly stifling blockchain innovation and contributing to regulatory uncertainty in the digital asset space.
Throughout the hearing and his CNBC interview, Gensler emphasized that existing rules are clear and that non-compliance within the crypto sector remains widespread. He accused industry participants of disregarding established policies and seeking preferential treatment. These assertions were in stark contrast to testimony from Dan Gallagher, Robinhood Markets’ chief legal officer and former SEC official, who argued that the agency has been largely unresponsive to attempts by crypto firms to comply with regulations. SEC Commissioner Hester Peirce echoed Gallagher’s concerns, calling for Congress to intervene and clarify the SEC’s policy direction.
