Gensler's Latest Video: Bitcoin and Ethereum Labeled 'Not Securities
- A 2018 video clip of SEC Chair Gary Gensler resurfaced, showing him stating that cryptocurrencies like Bitcoin and Ether are not securities.
- Gensler's current regulatory actions at the SEC, where he considers most cryptocurrencies as securities, contrast with his earlier stance.
- The resurfaced video has sparked criticism and accusations of hypocrisy, with some calling for Gensler's removal from his position.
A newly unearthed video clip of Gary Gensler, current Chair of the U.S
(SEC), has reignited debate within the crypto community.
The video, dating from 2018, features Gensler declaring that several cryptocurrencies, including Bitcoin, Ether, Litecoin, and Bitcoin Cash, are not securities. His stance in the video, circulating on social media, sharply contrasts with his current position as SEC Chair, where he appears to hold a stricter regulatory view towards cryptocurrencies.
The footage is believed to be from a 2018 Bloomberg event aimed at institutional investors. Gensler, an MIT professor at the time, can be heard stating, "Over 70% of the crypto market is Bitcoin, Ether, Litecoin, Bitcoin Cash. Why did I name those four? They’re not securities." The clip stands in stark contrast with Gensler's actions at the SEC, which has seen an influx of regulatory enforcement actions within the crypto sector in recent months.
Gensler's tenure as SEC Chair has witnessed him suggesting that all cryptocurrencies, apart from Bitcoin, may be classified as securities. Thus far, the SEC has labeled at least 68 cryptocurrencies as securities in various lawsuits, although none of the four cryptocurrencies referred to in Gensler's 2018 video are included in this list.
Gensler's Contradictory Views on Cryptocurrencies Spark Controversy and Criticism
Interestingly, Gensler's comments in the video diverge from his more recent stance on Ether. When asked by a U.S. House Committee in April if Ether was security, Gensler declined to give a clear response. This discrepancy has raised eyebrows within the cryptocurrency community, with many claiming that Gensler's recent actions as SEC Chair contradict his earlier views.
Other clips featuring Gensler around his tenure at MIT have also surfaced, depicting him making similar comments regarding cryptocurrencies. In one such video from 2019, Gensler praised the technology behind Algorand, calling it "great technology." However, just as the video was circulating, the SEC filed a lawsuit against the cryptocurrency exchange Bittrex, claiming that Algorand was security. This contradictory action led to widespread criticism of Gensler, with many in the crypto sector accusing him of hypocrisy.
Another 2018 video showed Gensler teaching a class at MIT, stating that three-quarters of the crypto market consisted of "non-securities." He further explained, "It's just a commodity, cash, crypto."
These seemingly conflicting stances have led to heightened criticism of Gensler, with many in the crypto community accusing him of hypocrisy. One U.S. lawmaker has even introduced a bill with the intent of removing Gensler from his position, alleging that he is abusing his power as the SEC Chair. This discovery further fuels the ongoing debate about the role and regulation of cryptocurrencies in the U.S. financial system.
Also read- SEC Challenges FTX's Plan to Repay Creditors in Stablecoins
