In a recent interview with CNBC, SEC Chair Gary Gensler clarified his position on Bitcoin and other cryptocurrencies. He said that Bitcoin is not a security, but he did not confirm whether it is a commodity or not.
Gensler explained that the SEC’s mandate is to protect investors, maintain fair and orderly markets, and facilitate capital formation. He said that the SEC is looking at crypto assets from these perspectives, and that some of them may fall under the definition of securities.
However, he said that Bitcoin is not a security, because it was not created or issued by any central entity. He said that Bitcoin is more like a “peer-to-peer decentralized system” that does not have any intermediaries or promoters.
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But when asked if Bitcoin is a commodity, Gensler did not give a direct answer. He said that the SEC does not have jurisdiction over commodities, and that the question should be directed to the Commodity Futures Trading Commission (CFTC).
He also said that the SEC is working with the CFTC and other regulators to coordinate their approaches to crypto regulation. He said that he welcomes innovation and competition in the crypto space, but he also stressed the need for investor protection and market integrity.
Gensler’s comments come amid growing interest and adoption of Bitcoin and other cryptocurrencies by institutional and retail investors. Many crypto enthusiasts see Bitcoin as a store of value, a hedge against inflation, and a new form of digital money.
US Congressman calls to fire SEC Chair Gary Gensler, citing abuse of power and pushing woke Political Agenda
In a scathing letter to President Biden, Representative Ted Budd (R-NC) demanded the immediate removal of Gary Gensler as the chairman of the Securities and Exchange Commission (SEC), accusing him of overstepping his authority and pursuing a radical agenda that harms American investors and businesses.
Budd, who is a member of the House Financial Services Committee and the co-chair of the Blockchain Caucus, wrote that Gensler has “abused his power” by imposing “unprecedented and unwarranted” regulations on the cryptocurrency industry, stifling innovation and driving capital overseas.
He also claimed that Gensler has “pushed a woke political agenda” by forcing public companies to disclose information on environmental, social and governance (ESG) factors, such as climate change and diversity, that are irrelevant to their financial performance and risk management.
Budd argued that these actions are contrary to the SEC’s mission of protecting investors, maintaining fair and orderly markets, and facilitating capital formation. He said that Gensler has “undermined the credibility and independence” of the SEC and “eroded public trust” in the agency.
He urged Biden to “act swiftly” and replace Gensler with someone who respects the rule of law, supports free markets and innovation, and serves the best interests of American investors and businesses.
Budd’s letter comes amid growing criticism of Gensler’s leadership and agenda from various stakeholders, including lawmakers, industry groups, investors, and legal experts. They have expressed concerns that Gensler is overreaching his authority, creating regulatory uncertainty, and imposing excessive burdens on market participants.
However, Bitcoin and other cryptocurrencies also face many challenges and uncertainties, such as volatility, security breaches, environmental concerns, and regulatory scrutiny. Gensler’s remarks may have implications for the future of Bitcoin and other crypto assets in the US and beyond.