US Securities and Exchange Commission (SEC) Chair Gary Gensler reiterated the agency’s stance on Bitcoin, declaring that the cryptocurrency is not a security.
Speaking during an interview on CNBC’s Squawk Box on Thursday, September 26, Gensler reaffirmed the SEC’s regulatory position, but his comments also included a sharp rebuke of the broader crypto industry for its widespread lack of compliance with existing laws.
This marks yet another instance of Gensler emphasizing that the crypto sector must adhere to traditional financial rules.
“Look, not liking the rules is not the same as, there aren’t rules,” says @GaryGensler on crypto regulation. “I think there’s a lot that have profited off of the public’s interest in this field but profited without the proper disclosures.”
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Gensler’s statement comes as Bitcoin, the world’s largest cryptocurrency with a market value of over $1.2 trillion, continues to be recognized as a non-security by US regulators.
The SEC has previously referred to Bitcoin as a commodity in official filings, signaling regulatory acceptance of the asset on American exchanges like the Nasdaq.
Gensler’s leadership has also seen the approval of several spot Bitcoin exchange-traded funds (ETFs), further solidifying the digital currency’s place within the regulatory framework.
What about Ethereum
While Bitcoin has been embraced by regulators, the situation is less clear for Ethereum, the second-largest cryptocurrency.
Although the SEC has approved Ethereum-based ETFs, Gensler’s agency has not officially classified Ethereum as either a security or a non-security.
Despite this ambiguity, the SEC has been active in enforcing federal regulations on companies and platforms associated with Ethereum.
Notable firms such as Consensys, Uniswap, and Coinbase have been targeted by the SEC in investigations focused on their activities within the Ethereum ecosystem.
The lack of clarity surrounding Ethereum has drawn sharp criticism from US lawmakers and industry leaders alike.
SEC vs. the industry participants
Members of the House of Representatives have accused Gensler of confusing the digital asset sector by coining new terms like “crypto asset security” without providing clear definitions or guidance.
This has fueled frustration among industry participants, many of whom argue that the SEC is stifling innovation and hindering the growth of blockchain technology.
Earlier this week, Gensler faced further backlash during a Congressional hearing attended by all five SEC commissioners.
Lawmakers criticized the SEC Chair for his approach to regulating the crypto market, accusing him of creating disorder and obstructing progress.
At the hearing, and again during his CNBC appearance, Gensler doubled down on his claims that the crypto industry has largely ignored existing rules, opting instead to seek special treatment outside of established financial regulations.
However, some within the industry are pushing back.
Dan Gallagher, chief legal officer at Robinhood Markets and a former SEC official, recently testified that the agency has been unresponsive to efforts by Robinhood to register its crypto offerings.
Gallagher suggested that SEC staff either delayed responses or failed to provide feedback altogether, leaving companies like Robinhood in regulatory limbo.
SEC Commissioner Hester Peirce echoed Gallagher’s concerns, arguing that Congress should intervene to address the policy gaps created by the SEC’s inaction.
As the debate over crypto regulation continues, Gensler’s firm stance signals that the SEC is unlikely to ease its scrutiny of the sector anytime soon.
Meanwhile, the digital asset industry remains in a state of uncertainty, awaiting clearer guidance on how to navigate the evolving regulatory landscape.
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