Key Points:
Chairman Patrick McHenry pressed Gensler on this distinction, to which Gensler responded:
“It does not meet the Howey Test, which is the law of the land for being a security. It’s not a security.”
This distinction holds significant implications for the regulation of cryptocurrencies and digital assets in the United States. Gensler’s statement affirmed the SEC’s long-standing stance that most cryptocurrencies and digital assets should be categorized as securities under U.S. law. The SEC defines securities broadly, encompassing any investment contract involving money invested in a common enterprise with the expectation of profits solely from others’ efforts.
Gensler Bitcoin stance hasn’t come without controversy, as the Republican Committee on Financial Services in the U.S. House of Representatives accused him of disregarding Congress during his term. They argue that Gensler has not adequately considered rulemaking or responded to lawmakers’ oversight requests, vowing to hold the SEC accountable for its responsibilities.
Notably, during the hearing, an individual seated behind Gensler displayed a “Stand With Crypto” NFT on a mobile device. This emblem symbolizes unity within the crypto community, advocating for sensible cryptocurrency policies.
As the debate over cryptocurrency regulation continues, Gensler Bitcoin stance is a commodity, not a security, sets a crucial precedent for the regulatory landscape in the United States.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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