- The US Securities and Exchange Commission Chairman Gary Gensler recently called Bitcoin a highly speculative asset class.
- Gensler compares the recent movements in Bitcoin’s price to a rollercoaster and questions the foundation of the cryptocurrency.
- America’s political landscape is finally shifting towards more crypto-savvy candidates, which may see Gensler replaced in the next regime, even if President Biden wins.
Gary Gensler, the Chairman of the US Securities and Exchange Commission has once again triggered the crypto community with another anti-crypto statement. This time, he called Bitcoin and Ether “highly speculative assets” while comparing the movements of Bitcoin’s price in the last few days to a roller coaster in an interview with Bloomberg’s Joe Mathieu and Kailey Leinz.
Gensler Will Not Comment on Whether Ether Is a Commodity Or a Security
Chair Gensler recently granted a Bloomberg Interview where he discussed systemic risk, climate rule, and crypto. Towards the end of the interview, Blomberg’s Kailey Leinz raised some questions on the pending Spot Ether ETFs and Gensler and the SEC’s position on whether or not the underlying asset Ether is a security.
“Of course, we are now two months into a world in which the spot Bitcoin products exist. They have had incredible demand more than $8 billion in inflows. Now the optimism is Ether Spot ETFs are next. Do you not first have to settle the question of whether Ether is a Security or a Commodity? Can you answer that first,” asked Leinz.
Gensler started by saying that what determines whether a crypto token is a security or not is the facts and circumstances on “whether the investing public is anticipating profit based on the activities of others.” However, Gensler adds that they “do have filings before them” and that he’s not going to comment. He goes on to liken Bitcoin’s volatility in the last two days to a roller coaster.
“You really should be conscious as investing public that this is a bit of a roller coaster ride on these volatile assets,” said Gensler.
He also says that thousands of “these tokens” may be securities because the investing public may rely on the efforts of some group of entrepreneurs in the middle of the projects to make a profit. The interviewer then doubled down on her former question now asking whether Gensler considers Ether as part of that group that might be securities.
“I understand that you’re asking the question. But again, I’m going to defer on that question,” replied Gensler.
Gensler Might Be Replaced In The Rapidly Evolving American Political Landscape
There have been great clamours for Gensler’s replacement with a more crypto-savvy and competent SEC Chair who will make more informed and proactive decisions while putting the average American’s interests first. Under Gensler’s regime, Americans were denied access to Spot Bitcoin ETFs until the courts technically forced him to approve them.
Gensler’s regime has also fallen out with major cryptocurrency firms and startups, leaving a negative effect on the American FinTech industry. There are also complaints of lack of proper guidance or policy from the agency to the crypto industry.
Considering that President Biden brought Gensler into office, it could favour his presidential bid if he replaces Gensler with someone who fiscal republicans and the crypto industry can relate to. Among the five SEC commissioners, Hester Pierce a.k.a. Crypto Mummy seems to be the most suited to right the SEC’s wrongs because of how closely she identifies with the crypto industry.