FameEX Hot Topics | Gensler from SEC Affirms in Early Video: BTC and ETH Are Not Considered Securities

A recently emerged video featuring Gary Gensler, the current chair of the U.S. Securities and Exchange Commission (SEC), has generated buzz on social media platforms. The footage, believed to be from 2018, captures Gensler affirming that certain cryptocurrencies, including Bitcoin (BTC), Ether (ETH), Litecoin (LTC), and Bitcoin Cash (BCH), should not be considered securities. This statement diverges from Gensler's recent regulatory actions as SEC chair, where he has designated numerous cryptocurrencies as securities.

In the video, Gensler, who was then a professor at the Massachusetts Institute of Technology (MIT), emphasizes that the mentioned cryptocurrencies should not be classified as securities. It's worth noting that this video predates Gensler's appointment as SEC chair by approximately two years.
While Gensler's previous viewpoint regarding specific cryptocurrencies as non-securities has sparked curiosity, his recent actions as SEC chair demonstrate a stricter approach. The SEC has initiated multiple lawsuits designating at least 68 cryptocurrencies as securities, though the four mentioned in the 2018 video have not been included in this classification.

The video also highlights a contrasting perspective from Gensler concerning Ether. In an April hearing before a U.S. House Committee, Gensler declined to provide a definitive answer when questioned about whether ETH should be regarded as a security.

Additional videos have emerged this year, featuring Gensler discussing cryptocurrencies during his tenure at MIT. In one such video circulated in April, Gensler commends Algorand as "great technology." Interestingly, during that same week, the SEC filed a lawsuit against Bittrex, a crypto exchange, asserting that its token ALGO should be considered a security. This led many individuals in the crypto industry to criticize Gensler for his perceived inconsistency. In another 2018 video that circulated in April, Gensler can be seen teaching a class at MIT, where he suggests that three-quarters of the market comprises "non-securities" such as commodities, cash, and cryptocurrencies.

Although Gensler made these comments before assuming the role of SEC chair, some figures within the crypto space have accused him of exhibiting hypocrisy. In fact, a U.S. lawmaker introduced a bill with the intention of removing Gensler from his position, citing allegations of abuse of power.
The surfacing videos and Gensler's evolving perspective on the classification of cryptocurrencies have triggered debates and raised concerns about regulatory consistency within the SEC. As the crypto industry continues to evolve, Gensler's actions and statements are subject to intense scrutiny from market participants and lawmakers alike.

Disclaimer: The information provided in this section is for informational purposes only, doesn't represent any investment advice or FameEX's official view.