Gensler’s Stand on Bitcoin as a Security
During a recent session before the US Congress, Gary Gensler, the head of the Securities and Exchange Commission (SEC), confirmed once more that he doesn’t view Bitcoin as a security. Responding to a question posed by Congressman Patrick McHenry, Gensler pointed out that consistent consensus among him, the SEC team, and former chairs was that Bitcoin does not satisfy the criteria set out by the Howey Test – a benchmark that determines what qualifies as a security in the United States.
Elusiveness on Bitcoin’s Commodity Status
Although Gensler was clear on Bitcoin’s status as not being a security, he was notably more reserved when McHenry inquired if this then designates Bitcoin as a commodity. Instead of providing a direct answer, Gensler vaguely mentioned that “the test is different for other regulations”, implying the uncertainty surrounding Bitcoin’s precise classification under various legal frameworks.
Controversy Surrounding Gensler and FTX Exchange
The discussion wasn’t solely centered on Bitcoin. Congressman McHenry brought up concerns related to the recent collapse of the FTX crypto exchange and its link with its founder, Sam Bankman-Fried. Gensler’s alleged opacity around his interactions with both FTX and Bankman-Fried was a significant point of contention. McHenry rebuked Gensler for his perceived “lack of receptivity” towards Congress’s attempts to supervise and understand the intricate details of FTX’s significant setback.
Gensler’s Historical Approach to Cryptocurrency Questions
This isn’t the first instance where Gensler has sidestepped questions attempting to pinpoint the exact categorization of cryptocurrency assets. Moreover, while some global nations are becoming more receptive to the crypto realm, the SEC remains unyielding in its rigorous evaluation of the burgeoning industry.
The current price of Bitcoin at the time of writing is $26,282.