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SEC Chair Gary Gensler Refuses to Comment on Whether Ether is a Security

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Tue, 08/03/2021 - 17:40
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Alex Dovbnya
SEC Chair Gary Gensler has dodged a question about Ether’s regulatory status
SEC Chair Gary Gensler Refuses to Comment on Whether Ether is a Security
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During a Q&A section at the Aspen Security Forum, Gary Gensler said that the Howey Test is clear enough in order to determine whether a certain cryptocurrency asset is a security.

He, however, dodged a question about Ethereum’s regulatory status after repeatedly stating that Bitcoin is a commodity in the past.     

Back in 2018, Gensler claimed that there was a strong case for Ether to be classified as a security.    

In his recent speech, Gensler said that he agrees with Jay Clayton, his predecessor when it comes to initial coin offerings:

It crosses chairs, it crosses party lines, it crosses different philosophies.

During his tenure, Clayton proclaimed that every initial coin offering was a security.

While former top SEC official William Hinman declared that Ether wasn’t a security, the agency later clarified (on numerous occasions) that he merely expressed his personal views.  

As reported by U.Today, the SEC boss said that he was concerned about decentralizing finance in a Bloomberg interview. Gensler also mentioned that there were “significant gaps” in DeFi when it comes to investor protection.       

He also said that the SEC could “definitely” use some more staff in order to cope with crypto regulations.

Related
SEC Chair Gary Gensler Warns There Are Non-Compliant Crypto Tokens

Gensler is open to a Bitcoin ETF

In his speech, Gensler said that he was open to approving a Bitcoin-tied exchange-traded fund:  

I'm looking forward to what staff says about these filings.

The SEC hasn’t greenlit a crypto ETF as new proposals keep piling up, with Cathie Wood’s Ark becoming the latest player to join the race.

Gensler believes that crypto needs rules if it aspires to reach widespread adoption.

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.