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SEC Gary Gensler Thinks Bitcoin is a Commodity

The Chairman of the US SEC, Gary Gensler, expressed his view on cryptocurrencies. Via an interview with Jim Cramer, the Mad Money host, he spoke about Bitcoin too.

More Encouragement for Bitcoin

In Gensler’s view, Bitcoin is validly a commodity. He emphasized that all regulators can come together to oversee activities in the cryptocurrency sector. In his words, Bitcoin is a speculative asset class.

He said further that when people invest in cryptocurrencies, they expect to have a return. It is just like they invested in other financial commodities considered securities. Gensler also mentioned the pros and cons of the speculative asset class.

A lot of these crypto-assets have the major attributes of security, Gensler said. He made a contrasting description like his predecessors had done. He emphasized the commodity nature of Bitcoin.

Are there Agreements to this Effect?

Gensler’s statement is in tandem with what was said by Rostin Behnam earlier this month. Behnam, on his part, said Ethereum is equally a commodity. Rostin Behnam is the Chairman of the Commodity Futures Trading Commission.

Many proponents of the Bitcoin asset appreciate Gensler’s position. Gensler is just the second Chairman of the SEC to acknowledge Bitcoin as a commodity. That makes it almost impossible for it to be reversed in the future.

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Microstrategy’s CEO, Michael Saylor, also made his opinion known about Gensler’s view. He said Bitcoin is a commodity that’s important for treasury reserve assets. It lets politicians, institutions, and government agencies support Bitcoin as a digital asset.

The Gensler comments instigated discussions about Grascale’s plan. The firm plans to turn its Bitcoin Trust into an EFT based on spots. It expects to receive an answer from the US SEC on the 6th of July.

In James Seyffart’s words, Gensler’s statement serves Bitcoin’s interest. James Seyffart is an EFT analyst with Bloomberg. But that might not be sufficient to have the Grayscale EFT request approved.

Bitcoin Still Has Sufficient Trust

Gensler is the second Chairman of the SEC to acknowledge Bitcoin as a commodity. That makes it unlikely for it to be changed anytime in the future. That is, at least, what the founder of Blockchain Investment Group, Eric Weiss, thinks.

There is, however, a disagreement in the crypto industry on how to classify digital assets. But staunch Bitcoin proponents say only Bitcoin can be considered a commodity. They say others are just unregistered securities.

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Some others think categorizing cryptocurrencies in a binary fashion is totally wrong. Charles Hoskinson thinks regulation based on categories won’t work with cryptocurrencies. This is especially because it’s going to rely on centralized entities to report and disclose.


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Shelly Melancon (Switzerland)

Shelly is a cryptocurrency enthusiast from Switzerland, she bought her first crypto in 2015 when it was way less popular then it is today and since 2017 she has been writing about cryptocurrency for online news portals. Shelly is the newest addition to the Tokenhell team, she writes mostly news and reviews related articles , stay tuned to her posts to stay up to date with the crypto world.

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