According to The Block, SEC Chairman Gary Gensler stated in an interview with Yahoo Finance on January 10, 2024, that the SEC 'has never said' that Bitcoin and Ethereum are securities. This statement clarifies the market's misunderstanding of the SEC's regulatory stance on cryptocurrencies and brings new hope and uncertainty to the cryptocurrency market.
The SEC's regulatory position on cryptocurrencies
Gary Gensler's statement is not the first of its kind. In 2018, William Hinman, the head of the SEC's Division of Corporation Finance, stated at the Yahoo Finance Global Markets Summit in San Francisco that the SEC would not classify Ethereum and Bitcoin as securities. This position was supported by former SEC Chairman Jay Clayton, who had explicitly stated that Bitcoin is not a security.
Response of the cryptocurrency market
This statement has had a significant impact on the cryptocurrency market. Bitcoin and Ethereum, as the two pillars of the cryptocurrency market, have long been the focus of attention regarding their securities attributes. The SEC's clear stance has provided market participants with a clearer understanding of the legal status of cryptocurrencies and has provided a legal basis for the innovation and development of related financial products.
The special status of Ethereum
Despite the SEC's negative stance on Ethereum's securities attributes, its regulatory position is not set in stone. In December 2023, Bloomberg analyst James Seyffart pointed out that the SEC recently approved Ethereum futures exchange-traded funds (ETFs), which may suggest the SEC acknowledges Ethereum as a commodity rather than a security. In May 2024, the SEC approved Ethereum spot ETFs, further indicating the SEC's recognition of Ethereum's non-security attributes.
However, the SEC remains cautious regarding Ethereum's staking functions. In April 2024, Ethereum infrastructure firm Consensys received a Wells notice from the SEC for its MetaMask trading and staking services, as the SEC believes they may violate federal securities laws. This indicates that, although Ethereum itself is not viewed as a security, certain of its functions may still be subject to SEC regulation.
Statements from SEC Chairman Gary Gensler have brought new hope to the cryptocurrency market, but they also remind market participants that the regulatory environment is constantly changing. Bitcoin and Ethereum, as the two pillars of the cryptocurrency market, benefit from the clarification of their legal status, which aids in market stability and development. However, with continuous technological advancements and market changes, the SEC's regulatory stance may continue to adjust. Market participants should closely monitor the SEC's latest developments to ensure compliance.
