During a recent interview with CNBC's "Squawk Box," Gary Gensler, the controversial head of the US Securities and Exchange Commission, has clarified that Bitcoin, the world's leading cryptocurrency, is a commodity.
"As it relates to Bitcoin, my predecessor and I have said that's not a security," Genser said.
Gensler has added that investors can now get exposure to exchange-traded products (ETFs) that were greenlit on his watch.
At the same time, the SEC head has frequently faced pushback from critics for his refusal to provide other cryptocurrencies with legal clarity. As reported by U.Today, Rep. Ritchie Torres (D-NY) argued that the second-largest cryptocurrency was not a security.
Follow the rules or die
Gensler has predicted that the cryptocurrency field is not going to last without regulation.
"This field will not long persist without investor protection or consumer protection," Gensler said during an interview.
The SEC boss has noted that many crypto projects rely on the public's interest in order to secure funding. Investors can decide whether they should bet on a particular cryptocurrency, but their decisions have to be based on proper disclosures. "You can decide to go long or short these projects, but you need the disclosures," he stated during the interview.
Gensler argues that many project founders have profited off of public interest without offering proper disclosures. "Inherently, there's business models that have a lot of conflicts," Gensler said.
"We've got 90 years of experience. It works reasonably well. We've got the deepest, most liquid capital markets," he said.
Godfrey Benjamin
Gamza Khanzadaev
Dan Burgin