Editor’s ChoiceSEC confirms bitcoin is not a security!

SEC confirms bitcoin is not a security!

There are a lot of major investors all across the financial markets who want to invest in bitcoin and cryptocurrencies but they keep saying I need regulatory clarity in order to actually start to allocate capital to this new industry.
Now one of the questions is will these assets fall under securities law or will they be treated as commodities? Gary Gensler the chairman of the sec was on CNBC this morning and he explicitly stated that “bitcoin and only bitcoin is the only asset that he is willing to clearly state is not a security. Bitcoin is a commodity and ultimately”.
What that means is that bitcoin has regulatory clarity? As we see more and more investors start to wrap their heads around this. We should see more of them get comfortable allocating capital to the bitcoin industry. Now that leaves the other 20 000 coins out there that have been created. What is gonna happen to them are they secure or are they not? Gary had a lot to say about them as well.
On CNBC in an interview, Jim asks Gary that you have been adamant that there should be some degree of coordination with the cftc and you about trying to make it so that we have more clarity let’s say on cryptocurrency. Where’s the state of play crypto right now?

Gary replied look this is a highly speculative aspect class. We’ve known this for uh a long time the ups and downs of this speculative asset class bitcoin and hundreds of other tokens. Many of these tokens offer the investing public or the investing public is hoping I should say hoping for a return. Just like when they invest in other financial assets we cost securities. Many of these financial assets and crypto-financial assets have the key attributes of security. So some of them they’re under the securities and exchange commission some like bitcoin and that’s the only one. I’m going to say my predecessors and others have said they’re a commodity.
He says “Right now you have hundreds if not thousands of these crypto tokens that have the basic attributes of raising money from the public. Have 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. We’ve got unfortunately a lot of projects that are non-compliant”.
So now sec chairman Gary clarifies that Bitcoin is not secure it is a commodity all the other coins that exist in the crypto industry according to him the majority of them actually are securities. They’re acting like securities and therefore they should be ruled under securities law. Now that means that there are a lot of people who issued these securities and didn’t register that probably are trying to figure out what they should do now.
It also means that a lot of investors were told you’re buying something that’s not a security and now all of a sudden that may actually not have been true. But at the end of the day regulatory clarity is really important. Just remember that clarity does not mean you get the ruling that you want. Simply means that there’s clarity and that everyone is told what the rules are and everyone agrees to abide by those rules.
So bitcoin being out in front being the most decentralized digital currency making sure that there is regulatory clarity that the sec the cftc and others all agree bitcoin is not a security. CZ the CEO and founder of Binance told on Twitter this morning there’s not a single jurisdiction in the world that I or he are aware of where bitcoin is classified as a security. Everyone believes that it is a commodity and that means that regulatory clarity should give confidence to investors who want to allocate to the space.
Now there are a whole bunch of other factors everything from the macro environment to the federal reserve monetary policy that would either encourage or deter participation in the bitcoin industry. But when you look at the regulatory front the clarity that is being provided now is an important step for more and more investors. Especially financial institutions public corporations and eventually nation-states getting comfortable with the asset and gaining some sort of exposure to it.
Make sure that you do your own research whenever you’re actually looking at assets, especially in the crypto industry. But here it is clear from the sec chairman bitcoin is not secure it’s a commodity and that ends up probably being a very big tailwind for the most decentralized digital currency in the world.

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