In recent statements, SEC Chairman Gary Gensler has firmly reiterated that Bitcoin is classified as a non-security under existing SEC regulations.
SEC Chair Gary Gensler has doubled down on his stance that Bitcoin is not classified as a security under current SEC regulations.
In recent statements to CNBC’s “Squawk Box,” Gensler highlighted the need for clear regulatory frameworks, especially as several firms capitalize on the public's interest in cryptocurrencies but resist the regulations designed to ensure market integrity.
Emphasizing the SEC's role in fostering trust in the market, Gensler highlighted the substantial losses and bankruptcies in the crypto space, underscoring the importance of having regulations in place to protect investors. He stated, “These innovations do not develop in the long term unless they also build trust.”
Despite Gensler's reaffirmation on Bitcoin's status, he acknowledged the discontent among crypto firms regarding regulatory frameworks. He noted that many industry stakeholders argue against the existence of such regulations, which he attributes to their discomfort with the SEC's enforcement actions.
Gensler's remarks follow the recent eToro settlement, which confirmed that Bitcoin (BTC), along with Bitcoin Cash (BCH) and Ethereum (ETH), are not considered securities.
In other news, Gensler discussed the SEC's proposal to mandate alternative trading systems choose whether to register as national securities exchanges or register as broker-dealers and comply with additional requirements under proposed Regulation ATS. This proposal aims to close regulatory gaps among trading platforms.
However, the proposed regulations have met significant push-back from digital-asset firms, including Coinbase, which argue that the definition of an exchange could inadvertently include DeFi platforms, complicating their compliance.
As the SEC continues to navigate the complex landscape of cryptocurrency regulation, Gensler reiterated the agency's commitment to fostering a transparent market. With no timeline set for final decisions on the trading systems proposal, the SEC remains open to considering applications from exchanges seeking to offer central clearing for the US Treasury market.
This market is projected to expand significantly under new rules.
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