SEC’s Gensler: Bitcoin not a security 

Gary Gensler has reaffirmed the SEC’s stance on Bitcoin and once again criticized the cryptocurrency industry for widespread non-compliance.

Bitcoin (BTC) is not a security, U.S. Securities and Exchange Commission Chairman Gary Gensler told CNBC’s Squawk Box hosts on Thursday, Sept. 26. This isn’t the first time Gensler and the SEC have taken regulatory action against the cryptocurrency’s leading token. SEC filings have referred to the $1.2 trillion asset as a commodity that is not a security.

The institution, chaired by Gensler, has approved about 10 spot Bitcoin exchange-traded funds and embraced Bitcoin on American exchanges such as Nasdaq.

Ethereum (ETH) exchange-traded funds have similarly been approved, but the SEC has taken a controversial approach against the second-largest cryptocurrency. The SEC has launched multiple investigations into Ethereum service providers such as Consensys, Uniswap, and other crypto trading facilitators like Coinbase.

The SEC and Gensler have declined to classify Ethereum as a security or non-security, while also enforcing federal rules for Ethereum ecosystem participants.

US politicians, particularly those in the House of Representatives, have accused Gensler of creating confusion in the digital asset industry and using made-up terms like “crypto asset security” in major lawsuits.

Gensler was criticized earlier this week during a Congressional hearing attended by five SEC commissioners for stifling blockchain innovation and causing turmoil in the cryptocurrency market.

At the hearing and during the CNBC interview, Gensler repeated rhetoric suggesting lack of compliance and lax disclosure in the crypto space, noting that rules exist for the industry but participants are ignoring the policies and demanding special treatment.

“Look, not liking the rules is not the same as not having rules,” he says. @GaryGensler on crypto regulation. “I think there are a lot of people who are profiting from the public interest in this space but without proper disclosure.” picture.twitter.com/DSk6rRm7XZ

— Squawk Box (@SquawkCNBC) September 26, 2024

His testimony and statements contradicted those of Robinhood Markets chief attorney Dan Gallagher, who, speaking at a separate hearing last week, claimed the commission was largely indifferent to Robinhood’s attempts to register.

Gallagher, a former SEC employee, said agency staff in some cases delayed feedback or were completely unresponsive. Commissioner Hester Peirce cited similar incidents at the regulator and echoed Gallagher’s view that Congress should step in to close the policy gap created by the SEC’s deliberate inaction.