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SEC Chief Gary Gensler Labels Bitcoin a Commodity, but Other Cryptos Securities

Gary Gensler, the chairperson of the U.S. Securities and Exchange Commission (SEC), has said that Bitcoin is the only crypto asset he feels comfortable naming a commodity.

Gary Gensler Labels Bitcoin a Commodity

In a recent interview with Mad Money host Jim Cramer, Gensler publicly clarified his stance on cryptocurrencies, particularly Bitcoin. 

In addition to speaking on Bitcoin, Gensler explained that some cryptocurrencies that function in a similar capacity to bitcoin could also be classified as commodities.

The SEC Chief’s comments align with those of the chairperson of the Commodity Futures Trading Commission (CFTC), Rostin Behnam, who claimed last month that Bitcoin (BTC) is a commodity.

Most Other Cryptos Are Securities 

Although he declined to discuss other specific crypto tokens, the SEC Chief hinted at how the regulatory agency classifies the majority of other cryptocurrency tokens.

Gensler seemingly doesn’t feel that other cryptocurrencies can be classified as commodities in the same way, claiming that “many of these crypto financial assets have the characteristics of securities.”

On the Flipside

  • Unlike Gensler, who referred only to crypto assets like Bitcoin as commodities, the Head of the CFTC also labeled Ethereum (ETH) a commodity.

Why You Should Care

With Mr. Gensler being the second, consecutive SEC boss to call Bitcoin a commodity, proponents of the leading asset have welcomed the approach, agreeing that it has become all but impossible for the classification to be reassigned in the future.

Find more on Rostin Behnam’s statements below:

CFTC chairman considers Bitcoin and Ethereum to be commodities

For the latest on the SEC vs. Ripple battle, read:

SEC Vs Ripple: Hinman Related Hearing Suicidal for SEC?

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed to be financial legal or tax advice. Trading Forex, cryptocurrencies, and CFDs poses a considerable risk of loss

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Author

Milko Trajcevski has been in the crypto world for years, and as such has gathered both a skill for writing as well as a native prowess when it comes to understanding everything that occurs within that world. Through skilled writing and determination, he covers articles about cryptocurrency, tokens, blockchain, crypto-asset regulations, crypto wallets, exchanges, liquidity, DApps, forks, mining, security, and blockchain technologies. He is a professional with a track record of proven expertise within the crypto space.