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SEC’s Gensler Denies Calling Bitcoin and Ethereum Securities as Term Ends

Outgoing SEC Chair Gary Gensler shockingly denies ever labeling Bitcoin or Ethereum as securities, contradicting years of regulatory battles. As his term ends, is this just a final act of defiance or a hint of changes to come under new leadership?

In a shocking turn of events, outgoing SEC Chairman Gary Gensler has denied ever classifying Bitcoin or Ethereum as securities. The statement comes as a surprise given Gensler’s notoriously tough stance on crypto regulation throughout his tenure.

Gensler’s Surprising Denial

During a recent interview with Yahoo Finance, Gary Gensler made the surprising claim that the SEC had never officially labeled Bitcoin or Ethereum as securities. This contradicts years of regulatory battles and uncertainty surrounding the classification of these top cryptocurrencies.

“We haven’t said that Ethereum is a security. (…) I think Bitcoin and Ethereum investors, the public as you mentioned, had access to those funds and exchange-traded products.”

– Gary Gensler, SEC Chairman

Gensler’s statement raises eyebrows, given his history of aggressive crypto enforcement actions and attempts to bring digital assets under the SEC’s purview. Many in the industry have long viewed Gensler as a roadblock to mainstream crypto adoption due to his hardline approach.

A History of Regulatory Battles

Under Gensler’s leadership, the SEC has consistently pushed for greater oversight of the crypto industry. The agency has faced criticism for its lack of clear guidance on which digital assets qualify as securities, leading to confusion and legal battles with prominent crypto projects.

  • Ethereum’s Staking Controversy: Gensler previously suggested that Ethereum’s transition to proof-of-stake could make it a security, due to staking rewards resembling investment contracts.
  • Bitcoin ETF Delays: The SEC repeatedly delayed and rejected applications for Bitcoin spot ETFs, citing concerns over market manipulation and a lack of surveillance-sharing agreements.

Gensler’s apparent change of tune comes as his term as SEC Chairman draws to a close. With the upcoming inauguration of President-elect Donald Trump, a new, potentially pro-crypto SEC chair is set to take the helm.

A Shift in SEC’s Crypto Stance?

The crypto community is cautiously optimistic about the change in leadership at the SEC. Many hope that a more crypto-friendly chair will provide much-needed regulatory clarity and foster innovation in the space.

It remains to be seen whether Gensler’s recent statement is a genuine reflection of the SEC’s stance or a last-ditch effort to shape his legacy as his tenure comes to an end.

As the crypto industry continues to evolve and mature, the need for clear, consistent regulation becomes increasingly apparent. The incoming SEC leadership will play a crucial role in determining the future of digital assets in the United States and beyond.

Key Takeaways

  • SEC Chairman Gary Gensler denies classifying Bitcoin and Ethereum as securities
  • Gensler’s statement contradicts his history of tough crypto regulation
  • Change in SEC leadership sparks hope for a more crypto-friendly approach
  • Clear, consistent regulation is crucial for the growth and maturation of the crypto industry

As the crypto world awaits the appointment of a new SEC chair, all eyes are on the regulatory landscape. Will the agency adopt a more supportive stance towards digital assets, or will the uncertainty continue? Only time will tell, but one thing is certain: the crypto revolution is here to stay, and regulators must adapt to keep pace with this rapidly evolving industry.

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