SEC Chairman Gensler Comments on Bitcoin and Ethereum; Avoids Ethereum Security Classification

cryptonews.com:

On March 6, SEC Chairman Gary Gensler chose not to disclose whether the U.S. Securities and Exchange Commission classifies Ethereum as a security or a commodity, a decision eagerly anticipated by the market in light of its potential impact on the approval of Ethereum ETFs.

The SEC chair was a guest on Bloomberg TV, where he discussed the turmoil at the NYCB, gas emissions, and cryptocurrencies.

Speaking to the TV hosts, Gary Gensler deferred on how the regulator views Ethereum, even though the market expects the agency to approve a spot ETH ETF following the approval of Bitcoin funds in January.

So far, the agency has delayed its decision to approve or reject any of the Ether ETF applications. This encompasses applications from major firms such as BlackRock, Galaxy, and Fidelity

Although Gensler didn’t reveal the SEC’s stance on Ether, he commented on the speculative nature of cryptocurrencies, likening their volatility to roller coaster rides.

He expressed concerns about the volatile nature of cryptocurrencies like Bitcoin and Ethereum and advised investors to be cautious when transacting with them.

“One could just look at the volatility of Bitcoin in the last few days. I grew up loving roller coasters,” he explained. “Maybe in my adult years, I don’t ride them as much. But you really should be conscious as the investing public that this is a bit of a roller coaster ride on these volatile assets.”

Despite the agency’s current stance on Ether remaining undisclosed, many in the cryptocurrency sector argue that Ether should be classified as a commodity rather than a security.

Global regulators like the U.S. Commodity Futures Trading Commission and the UK Financial Conduct Authority (FCA) already regard Ether as a commodity.