Gary Gensler – the man in charge of the Securities and Exchange Commission (SEC) – has stated that bitcoin is the only cryptocurrency he can think of that is a legitimate commodity.
Gary Gensler on the Classification of BTC
The news is making waves across the space given that there has been a fight going for many years about what bitcoin can be classified as. Is it a commodity? Is it a security? What category does bitcoin fall under? According to Gensler, the answer is clear.
What’s interesting is that this would ultimately put bitcoin out of Gensler’s control. As the man charged with running the SEC, he is tasked with overseeing the maneuvers of Ripple and many of bitcoin’s altcoin cousins that have made serious names for themselves over the past several years. By declaring bitcoin an actual commodity, the currency is out of his hands, and he has no say in any matters regarding the world’s number one digital currency by market cap.
It’s unusual that he would be willing to tell the truth like this and give himself no control or power over the cryptocurrency, but that certainly appears to be the case in what is considered an admirable move for one of the world’s leading financial experts.
In a recent interview, Gensler stated:
Some like bitcoin, and that’s the only one I’m going to say… my predecessors and others have said, they’re a commodity.
He was strict, however, when it came to many of the world’s leading altcoins. He was quick to classify them as securities, and thus they should be under the watchful eyes of his agency the SEC. He stated:
Many of these financial assets, crypto financial assets, have the key attributes of a security… The investing public is hoping for a return just like when they invest in other financial assets [that] we call securities.
His words are a follow up to a new piece of legislation that emerged last week known as the Responsible Financial Innovation Act. Many bitcoin advocates are excited about the prospects that this presents and took to social media to show their delight and happiness.
Digital asset fund manager Eric Weiss, for example, wrote in a tweet:
Gensler is the second 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.
Many Are Excited
MicroStrategy CEO Michael Saylor was also enthusiastic about the ruling, claiming that said classification was “essential for any treasury reserve asset.”
He also said that Gensler ultimately opened the door to government agencies and federal heads treating bitcoin with the right respect and allowing it to serve as an asset for growing the economy and extending “property rights and freedom to all.”