SEC Chair finally admits that Bitcoin is a “Store of Value,” classifies most crypto tokens as securities
BTC Peers
Published May 07, 2021 07:04PM ET
Updated May 07, 2021 07:30PM ET
SEC Chair finally admits that Bitcoin is a “Store of Value,” classifies most crypto tokens as securities
In a Friday appearance on CNBC’s “Squawk Box,” Gary Gensler, the chairman of the U.S. Securities and Exchange Commission (SEC) admitted that Bitcoin was a “store of value” despite its volatility.
Gensler, who was newly appointed as the head of the agency opined that “many” cryptocurrency tokens were securities. He remarked:
To the extent that something is a security, the SEC has a lot of authority. And a lot of crypto tokens—I won't call them cryptocurrencies for this moment—are indeed securities.Gensler’s statement implies that the financial watchdog could start going after several cryptocurrencies. Recall that the agency already has an ongoing battle with Ripple Inc. for selling unregistered securities.
This is not the first time that the SEC is going after crypto companies that it considers might have sold unregistered securities. While some have been slammed with hefty fines, others were simply forced to leave the U.S.
With Gensler as the new head of the SEC, the crypto community celebrated for a while considering his portfolio as blockchain tech and digital asset educator at MIT. However, back in 2018, he said that Ethereum and Ripple’s XRP could both be considered as an unregistered security.
Speaking about Bitcoin, Gensler described the leading cryptocurrency as scarce and “highly volatile.” He said:
It's a digital, scarce store of value, but highly volatile.He also said that Bitcoin was not considered a security.
Continue reading on BTC Peers
Get The News You Want
Written By: BTC Peers
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.