US SEC chairman Gary Gensler speaking with Jim Cramer on CNBC has made it clear that Bitcoin is the only crypto he is willing to openly call a commodity.
Gensler speaking with Mad Money host Jim Cramer highlighted the speculative nature of the crypto markets, arguing that most of them shared a lot of similarities with Securities. However, according to Gensler, only Bitcoin and some other digital assets, which he took care not to mention, can be classified as commodities.
“…some like Bitcoin. And that’s the only one, Jim, I’m going to say, because I’m not going to talk about any one of these tokens. But sure, my predecessors and others have said they’re a commodity,” said Gensler.
The SEC chair went on to clarify that to police the emerging crypto markets properly, the SEC was going to have to work with the CFTC and other banking regulators. “There’s a lot of work to be done to really protect the investing public. And many of these tokens right now are … potentially non-compliant,” said the SEC chief.
It is worth noting that Gensler has previously stated that the SEC is currently in talks with the CFTC on how to police the crypto markets.
Furthermore, Gensler stressed the need for transparency in the markets. According to Gensler, there are always risks in markets, but crypto firms must give “full and fair disclosures” so investors can make informed decisions.
The debate about which crypto-assets should be considered a security or commodity has gained steam in the light of the SEC vs. Ripple case and debates over which regulator should have greater oversight over the crypto markets.
Unsurprisingly, Gensler’s classification of Bitcoin as a commodity has garnered positive responses from popular Bitcoin maximalists. For example, MicroStrategy chief Michael Saylor sharing the video, tweeted, “Bitcoin is a commodity, which is essential for any treasury reserve asset. This allows politicians, agencies, governments, & institutions to support bitcoin as a technology & digital asset to grow the economy and extend property rights & freedom to all.”
It is worth noting that Senators Cynthia Lummis and Kirsten Gillibrand have introduced a bipartisan bill to regulate the crypto markets. While the bill does a lot to clarify the debate on what qualifies as a security, it has raised concerns over the future of decentralized crypto projects in the US.