Regulatory Fog Remains as SEC Chief Doesn't Mention Ethereum as a Commodity, Does Not Say Bitcoin is the Only One Either
Ethereum (ETH) advocates have reacted after the United States Securities and Exchange Commission (SEC) Chairman Gary Gensler refrained from labeling the coin a commodity – and instead chose to name bitcoin (BTC) among the tokens the SEC chiefs before him deemed a non-security. He, however, contrary to many reports, did not single out bitcoin as 'the only' commodity.
In an interview with CNBC’s Jim Cramer, Gensler stated:
“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, my predecessors and others have said – they’re a commodity.”
Gensler stated that "bitcoin and hundreds of other tokens" are a part of a "highly speculative asset class." He further added that some “crypto financial assets have the key attributes of a security,” saying that in the case of many tokens, “the investing public is hoping for a return” on their stakes.
He argued that,
"Right now, you have hundreds, if not thousands, of these crypto tokens that have the basic attributes of raising money from the public, and having a group of entrepreneurs that you might have on your show, saying, 'Come hither, we've got a good idea for you'. And that's okay in America if you comply with the laws, and we've got, unfortunately, a lot of projects that are non-compliant."
ETH enthusiasts are hoping to win converts to their cause when the network finally undergoes the Merge that will see it become a proof-of-stake (PoS) protocol. The Merge could take place in August, and optimistic community members have hoped that moving away from a more energy-intensive mining protocol could help the coin’s reputation.
But a fresh dose of regulatory uncertainty will come as a possible blow to ETH advocates.
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