SEC Commissioner Gensler Confirms Bitcoin’s Commodity Status.
According to Gensler, numerous crypto assets have security characteristics, but Bitcoin is the only crypto he is comfortable openly classifying as a commodity.
On Monday, Securities and Exchange Commission Chairman Gary Gensler shocked Crypto Twitter by confirming that Bitcoin (BTC) is a commodity. Its impact on Grayscales’ proposed Bitcoin ETF was questioned, as was the exclusion of Ethereum.
On CNBC’s Squawk Box on Monday, June 27, the SEC chair stated that while several crypto-financial assets have the key characteristic of a security, Bitcoin is the “only one” that he feels comfortable publicly classifying as a commodity.
“Some, like Bitcoin — and that’s the only one I’m going to say because I’m not going to talk about any one of these tokens, but my predecessors and others have said they’re a commodity.”
The remarks sparked discussion regarding Grayscale’s proposal to convert its Bitcoin Trust into a spot-based exchange-traded fund (ETF), which is scheduled to be approved or denied by the SEC on July 6.
According to James Seyffart, an ETF analyst at Bloomberg Intelligence, while Gensler’s comments are encouraging for Bitcoin, they may not be enough to get Grayscale’s Bitcoin-spot ETF authorized next week.
Similar views were made by Eric Balchunas, a senior ETF analyst at Bloomberg, who stated that Grayscale’s GBTC had only a 0.5% probability of being converted to an ETF.
Nonetheless, Gensler’s comments on Bitcoin have been interpreted positively for the crypto king.
Michael Saylor, a Bitcoin bull, tweeted the video with his 2.5 million Twitter followers, saying that Bitcoin is vital as a treasury reserve asset, allowing governments and institutions to support it as a digital asset to expand the economy.
Meanwhile, Eric Weiss, founder of Blockchain Investment Group, highlighted on Twitter that Gensler is the second SEC chair to label Bitcoin a commodity, making future changes very impossible.
Interestingly, Bitcoin’s price fell from a 24-hour high of $21,478 to $20,635 at the time of writing, despite the positive news.
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