Gary Gensler, chair of the SEC, stated on June 27 that Bitcoin is the only cryptocurrency he regards to be outside of the SEC’s legal reach. He sees Bitcoin as a commodity that will come under the jurisdiction of the Commodity Futures Trading Commission (CFTC).
The SEC Executive’s declaration that all cryptocurrencies, including Ethereum (ETH), are digital assets subject to SEC legal regulation is crucial for the crypto community. Gary Gensler, the chair of the SEC, also said that he would not go into detail about any other cryptocurrencies other than Bitcoin. The crypto community’s different outlook on the SEC chair Gary Gensler’s assertion
Gary Gensler’s statement has a positive effect on Bitcoin. However, James Seyffart, a Bloomberg Intelligence ETF specialist, believes it will not be sufficient to get the BTC spot ETF of Grayscale authorised next week.
The announcement fueled speculation about Grayscale’s proposal, which the SEC was expected to approve or reject on July 6.
This isn't new from Gensler, but definitely positive IMO. Unfortunately this isn't enough for approval of $GBTC's conversion into a spot #Bitcoin ETF. Odds of SEC approval next week (or this week) are near zero in our opinion. https://t.co/mvRnkajGdd
— James Seyffart (@JSeyff) June 27, 2022
The cryptocurrency community also took note of Gensler’s failure to indicate whether he thought of Ethereum as a commodity like Bitcoin. Despite the fact that the CFTC and authorities previously agreed that ETH was a commodity.
Financing company Swanky Finance questioned Gensler on Twitter today, asking why he didn’t include Ethereum as a commodity.
— swankyfinance.eth (@swankyfinance) June 28, 2022
Optimistic for Bitcoin
Michael Saylor, the CEO of MicroStrategy and pro-Bitcoin supporter, tweeted that Bitcoin is critical as a treasury backup asset, allowing public institutions to embrace it as an asset to stimulate economic growth.
#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. pic.twitter.com/b4WmdSRilb
— Michael Saylor⚡️ (@saylor) June 27, 2022
Furthermore, Blockchain Investment Firm CEO Eric Weiss remarked on Twitter that Gary Gensler is the second SEC chair to designate Bitcoin as a commodity, making it nearly impossible for this category to be changed in the long term.
Gensler is the 2nd consecutive SEC Chair to declare that #Bitcoin is a commodity making it all but impossible for this classification to be altered in the future. Very significant indeed. https://t.co/pe6lNPq1EN
— Eric Weiss ⚡️ (@Eric_BIGfund) June 27, 2022
In addition, John Deaton, a crypto fan who represents the Ripple network in the Ripple vs SEC case, issued a warning about the security of all altcoins.
What have I and my 68K friends been saying all along. Every altcoin is in danger. https://t.co/dd3NICXl3m
— John E Deaton (204K Followers Beware Imposters) (@JohnEDeaton1) June 27, 2022
Surprisingly, Bitcoin’s price dropped from $21,478 to $20,635 in the last 24 hours despite the encouraging news. The price of Ethereum has also slid from $1,234 to $1,171 in the last 24-hours because the bears maintained their hold on the markets.