SEC’s Gensler Won’t Reveal his View on Trump’s Bitcoin Reserve, Reiterates Bitcoin Isn’t a Security

In terms of Bitcoin, my predecessor and I have previously stated that it is not considered a security. Now, you can convey this viewpoint by purchasing it through exchange-traded products. These products were given approval by the SEC in January, indicating a significant change in the agency’s stance towards the cryptocurrency market.

Gensler was responding to CNBC’s Joe Kernen asking whether the SEC chair was “warming up to top-tier crypto?”

In simpler terms, Chairman Gensler asked Joe, “Regarding the numerous altcoins, which number around 15-20 thousand, where do you stand on them?

Gensler declined to express his opinion on the suggestion put forth by Donald Trump, which proposed maintaining the existing government assets as the foundation of a strategic national Bitcoin reserve.

“Though I have personal opinions, considering my position and the ongoing election period, I’ll confine myself to discussing topics like the securities markets and Chairman Powell. Other individuals may address those matters as well.

As a researcher, I’ve consistently found myself aligning with Gensler’s perspective that most cryptocurrencies other than Bitcoin fall under the category of securities as defined by law. This stance persists even amidst resistance from the industry, legal challenges against the SEC, and a rather challenging two-hour grilling the SEC faced during a congressional hearing titled “Dazed and Confused: Breaking Down the SEC’s Politicized Approach to Digital Assets.

When questioned by CNBC about whether the SEC has been enforcing regulations through lawsuits, Gensler repeatedly emphasized that existing laws already grant his agency the authority to monitor and regulate the cryptocurrency market.

“Not liking the rules is not the same as that there aren’t rules.”

Additionally, Gensler expressed uncertainty about the future of Bitcoin in two decades, yet he emphasized a concern that the sector might face difficulties in establishing trust due to its prevalence of fraudsters and scammers.

Speaking on Thursday, Gensler highlighted the key players who were once pioneers in the cryptocurrency sector a couple of years back. Remarkably, several of these individuals are currently incarcerated, and SBF is just one example among many. The consequences of this have been severe, with approximately tens of billions of dollars worth of losses, bankruptcies, and other negative outcomes occurring. So, the question arises: Which dynamic American industry can thrive without establishing trust within that field and ensuring investor or consumer protection?

By the close of this week, Changpeng “CZ” Zhao, the founder of Binance, who is currently serving a four-month term in prison, will regain his freedom.