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A recently emerged video from 2018 reveals that Gary Gensler, the current Chairman of the US Securities and Exchange Commission (SEC), categorized several cryptocurrencies, including Bitcoin (BTC) and Ether (ETH), as “not securities.”
This perspective from nearly five years ago stands in contrast to his current viewpoint. Gensler has repeatedly stated that the only digital asset that could be classified as a commodity is BTC.
Gensler’s Perspective Prior to SEC Chairmanship
The video, which gained traction on Twitter, shows Gensler asserting that four prominent cryptocurrencies – Bitcoin (BTC), Ether (ETH), Litecoin (LTC), and Bitcoin Cash (BCH) – should not be regarded as securities.
This footage originates from 2018, during Gensler’s tenure as Chairman of the Maryland Financial Consumer Protection Commission. He was appointed as the SEC Chairman in 2021, overseeing the regulation of the securities markets.
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The SEC is also recognized for its stringent measures against the cryptocurrency sector and has recently initiated lawsuits against two major players in the industry – Binance and Coinbase. The primary allegations involve the provision of trading services with unregulated securities, including BNB, SOL, ADA, MATIC, and other notable assets.
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It is important to highlight that in its lawsuits, the SEC did not address the four cryptocurrencies that Gensler identified as “not securities” in 2018.
BTC as a Commodity and Ambiguity Surrounding ETH
Shortly after taking office at the SEC, Gensler somewhat adjusted his views on the cryptocurrency landscape. The American, who expressed his interest in the market in the summer of 2021, later described it as “highly speculative” and stated that he had never owned or utilized digital currencies.
He has also claimed multiple times that “everything other than Bitcoin” is a security, asserting that the leading cryptocurrency is the sole asset functioning as a commodity.
In contrast to BTC, Gensler has been rather vague regarding the classification of ETH. At the beginning of 2022, he refrained from providing a clear answer on whether the second-largest crypto asset should be categorized as a commodity or security.
Gensler maintained this ambiguity when questioned by the House Financial Services Committee in April of this year. He provided vague responses to the repeated inquiries posed by Patrick McHenry without offering specific details.
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