Bitcoin commodity status confirmed again by SECs Chair

By: Michael Wilson

Bitcoin commodity status confirmed again by SECs Chair

June 29, 2022 7:06 AM

Gary Gensler, the U.S. SEC chair said he views many crypto assets as having attributes of a security, but confirms that Bitcoin (BTC) is the only crypto he was comfortable to call a commodity publicly.

 

The United States Securities and Exchange Commission  (SEC) Chair Gary Gensler sparked reactions from Crypto Twitter on Monday after confirming that Bitcoin (BTC) is a commodity.

 

The U.S. SEC chair said while speaking to Jim Cramer on CNBC's Squawk Box on Monday.  Gensler said that many crypto-financial assets have attributes of a security, Bitcoin is the “only one” that am comfortable to publicly call a commodity:

 

“Some, like Bitcoin and that’s the only one I’m going to say because I’m not going to talk about any one of these tokens, but my predecessors and others have said they’re a commodity.”

 

However, Gensler comments on Bitcoin as the only crypto assets he recognizes as a commodity raised questions from Crypto Twitter on why he didn't mention Ethereum (ETH) and what this means for Grayscale Bitcoin ETF.

 

Grayscale Bitcoin ETF


Gensler remarks sparked up chatter about Grayscale’s application to convert its Bitcoin Trust into a spot-based ETF, which the SEC is expected to make a decision on in the coming days.

 

ETF analyst James Seyffart, at Bloomberg Intelligence, tweeted that while Gensler’s comments are positive for Bitcoin, it may not be enough to see Grayscale’s Bitcoin spot ETF being approved on July 6.

Ethereum is nowhere to be found


Crypto Twitter also noticed the fact that Gensler refrained from mentioning whether he placed Ether in the same commodities class, despite the U.S. Security and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CTFC) previously agreeing that Ethereum and Bitcoin falls under same class as commodities.

Bitcoin sees light


Gary Gensler’s views on Bitcoin have been perceived as a positive for the flagship crypto.

 

MicroStrategy founder and CEO Michael Saylor, shared the video to his 2.5 million Twitter followers, adding that Bitcoin is essential as a treasury reserve asset, which will allow governments and institutions to support it as a digital asset to grow the economy.

 

Founder of Blockchain Investment Group, Eric Weiss, in a Tweet noted that Gensler is the second SEC chair to declare Bitcoin a commodity, making it near impossible for this classification to be changed in the future.

However, this positive news has not stopped the bears from holding a firm grip on the market as Bitcoin (BTC) and Ethereum (ETH) continue to decline.