- US SEC Chairman Gensler reaffirmed that Bitcoin (BTC) is not a security under current regulations.
- The SEC is planning new regulations for DeFi and trading systems to protect investors.
- Cryptocurrency companies, including Coinbase, are opposing the expansion of regulatory scope.
In a recent statement, SEC Chairman Gary Gensler firmly reiterated that Bitcoin is classified as a non-security under existing SEC rules. His comments came during an interview on CNBC’s “Squawk Box.”
Gensler emphasized the importance of regulatory clarity, arguing that while many companies have benefited from increased public interest in cryptocurrencies, they are often resistant to regulations designed to ensure market integrity.
In an interview, Gensler noted that the SEC’s role is to foster trust in the market, saying, “If you don’t build trust, innovation won’t develop in the long term.” He cited significant losses and bankruptcies in the cryptocurrency industry and emphasized the need for regulations to protect investors.
Despite Gensler’s reaffirmation of Bitcoin, he acknowledged dissatisfaction among cryptocurrency companies regarding the regulatory framework. He emphasized that many industry stakeholders oppose the existence of such regulations because of their discomfort with enforcement actions taken by the SEC.
Notably, Gensler’s comments follow the recent eToro consensus confirming that Bitcoin (BTC), along with Bitcoin Cash (BCH) and Ethereum (ETH), are not considered securities.
SEC’s proposed trading system
Previously, Gary Gensler testified before the U.S. House of Representatives Financial Services Committee that the SEC would require alternative trading systems to choose whether to register as a national securities exchange or as a broker-dealer and to comply with additional requirements under proposed Regulation ATS depending on their activities. discussed the proposal. and trading volume. The proposal aims to bridge the regulatory gap between trading platforms and ensure compliance with rules to prevent unfair trading practices.
However, the proposed rule has been met with significant pushback from digital asset companies, including Coinbase, who argue that the definition of exchange could inadvertently include DeFi platforms, complicating compliance.
As the SEC continues to navigate the complex landscape of cryptocurrency regulation, Gensler reiterated the SEC’s commitment to fostering transparent markets.
While no timetable has been set for a final decision on the proposed trading system, the SEC remains open to considering applications from exchanges to provide central clearing for the U.S. Treasury market, which is expected to expand significantly under the new rules.