Gary Gensler, the chairman of the Securities and Exchange Commission (SEC), explained his position on Bitcoin during a hearing before the Financial Services Committee on Wednesday. In answer to inquiries from the Republican committee head Patrick McHenry, Gensler said that Bitcoin is not a security.
Gensler’s views on other coins
Gensler elaborated on his position, pointing out that Bitcoin does not pass the Howey test and highlighting its distinction from securities. However, he refrained from specifically classifying Bitcoin as a commodity.
The categorisation of cryptocurrencies like Ethereum (ETH) has already been covered by Gensler. He said during a New York Magazine interview that it may be viewed as a security.
He has refrained from making a direct statement on Ethereum’s legal status, which has sparked rumours and debates regarding the regulations governing other cryptocurrencies.
The Pokemon card conundrum
Funny side note: During the session, Congressman Ritchie Torres questioned the type of transactions employing tokenized Pokemon cards.
Even while he insisted that the sale of a conventional Pokemon card isn’t a security, Gensler’s reaction was circumspect, saying he would need more information to decide if acquiring a tokenized Pokemon card on a blockchain could be regarded as a security transaction.
