SEC Chair Gary Gensler has confirmed that the regulator regards bitcoin as a commodity. He said as much on CNBC.
Gensler reminded that cryptocurrencies are a speculative asset class. When people invest in “bitcoin and hundreds of other tokens,” they are counting on profits, he said.
According to him, many of these “crypto-financial assets” possess key attributes of securities and are under the Commission’s jurisdiction.
“Some, such as bitcoin, and that’s all I’m going to say, because I don’t intend to discuss any of these tokens, but my predecessors and others have said that they are a commodity,” Gensler said.
Supporters of the first cryptocurrency welcomed the statement by the SEC chief.
“Gensler has become the second consecutive SEC chair to name bitcoin a commodity, making it virtually impossible to change this classification in the future. Very important indeed,” wrote Eric Weiss, founder of the Blockchain Investment Group.
Gensler is the 2nd consecutive SEC Chair to declare that #Bitcoin is a commodity making it all but impossible for this classification to be altered in the future. Very significant indeed. https://t.co/pe6lNPq1EN
— Eric Weiss ⚡️ (@Eric_BIGfund) June 27, 2022
CEO MicroStrategy Michael Saylor said, that this will allow “policymakers, agencies, governments and institutions to support bitcoin as a technology and a digital asset for the growth of the economy and the spread of ownership and freedom for all.”
Analyst ETF in Bloomberg Intelligence James Seyffart described Gensler’s comments as “not news, but certainly positive.” However, in his view, this will not be enough for the SEC to approve next week the conversion of Grayscale Bitcoin Trust into a spot ETF. The odds are near zero, he added.
This isn’t new from Gensler, but definitely positive IMO. Unfortunately this isn’t enough for approval of $GBTC‘s conversion into a spot #Bitcoin ETF. Odds of SEC approval next week (or this week) are near zero in our opinion. https://t.co/mvRnkajGdd
— James Seyffart (@JSeyff) June 27, 2022
Seyffart’s view was echoed by his colleague Eric Balchunas, who assessed the probability of a favourable regulator decision on converting GBTC to 0.5%.
In February, Gensler named as the reason why the SEC rejected all applications to launch a spot bitcoin ETF, their failure to meet securities-law standards aimed at preventing fraudulent or manipulative practices.
During the interview, the head of the SEC noted cooperation with other federal agencies to oversee the crypto industry, including CFTC and banking regulators.
To that end, the Commission intends sign formal agreements with them.
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