U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler recently stated in multiple interviews that the SEC has never declared Bitcoin and Ethereum to be securities, and he discussed the current state of the cryptocurrency market and regulatory challenges. He emphasized the importance of transparency and compliance for market development, and also clarified that cryptocurrency funds did not interfere with the recent U.S. presidential election.

Gensler: SEC Has Never Said Bitcoin and Ethereum Are Securities

Gary Gensler, the SEC chairman who is the most concerned figure in the cryptocurrency industry, as he often collects "protection fees" from cryptocurrency companies, stated his position on the long-standing controversy over whether Bitcoin and Ethereum are securities during a recent interview with Yahoo Finance:

Neither I, the SEC, nor the previous chairmen have ever said that Ethereum is a security.

He added, "Given the limits of my role, I cannot directly and clearly state that these two tokens are not securities."

(The Cryptocurrencies the SEC Wants to Call "Crypto Asset Securities" Are Mocked by Industry Players as a Fabricated Term)

As for Bitcoin, he believes it may be different from other cryptocurrencies. He compared Bitcoin to gold, calling it speculative but having become a globalized trading asset:

Other assets may replace Bitcoin's position in the future, but its value still has a certain basis.

The Definition of Cryptocurrency Securities Has Never Been Clear

However, as early as March last year, the SEC was exposed to be deeply investigating the Ethereum Foundation and its related companies, with the intention of classifying Ether as a security.

Even Consensys, the Ethereum infrastructure developer, has criticized the SEC's heavy-handed enforcement, emphasizing that the company has received 7 subpoenas from the SEC since 2022, forcing it to sue the SEC through legal channels.

This shows that the SEC has made the legal status of cryptocurrencies, including Ethereum, unclear to the cryptocurrency market in recent years.

(Consensys Sues SEC, Supports Ethereum, Cites "Four Reasons" Why ETH Is Not a Security)

Emphasizes That the Focus Is on Thousands of Fraudulent Tokens

Faced with the approval of dozens of cryptocurrency ETFs by 2024, Gensler, as the reviewer, emphasized that exchange-traded products provide better protection for investors, including lower fees, regulatory mechanisms, and transparent disclosures.

He also reiterated that the majority of the cryptocurrency market is dominated by Bitcoin and Ethereum, while the other thousands of tokens have a high degree of speculation:

Over 70% of the cryptocurrency market is related to Bitcoin and Ethereum, but what I'm really focused on are the other 10,000 to 15,000 tokens that haven't complied with anti-money laundering laws, sanctions laws, and the securities laws we care about.

(SEC Chairman Gary Gensler's Tenure Countdown: Thanking Biden for the Appointment, the Wild West-Style Cryptocurrency Market Still Needs Stronger Regulation)

Cryptocurrency Funds Did Not Interfere with the U.S. Presidential Election

Additionally, in an interview with CNBC, Gensler also pointed out that the outcome of the 2024 U.S. presidential election was not affected by political contributions from cryptocurrency interest groups:

I believe that in this election, although as you pointed out, there was fundraising from cryptocurrency interest groups, I don't think that was the main point of the election.

Previous reports showed that the cryptocurrency lobbying organization Fairshake and the Coinbase advocacy group Stand With Crypto (SWC) received the majority of cryptocurrency campaign funds during the U.S. election, raising up to $203 million since the third quarter of 2023, and successfully pushing many candidates into Congress.

The main sources of funding are said to be the U.S. exchange Coinbase and large companies like the payment company Ripple.

(Crypto Players Rush into the White House! On the Eve of Trump's Inauguration, Circle, Coinbase and Ripple Donated Millions to Join the Advisory Team)

As Gensler is about to step down as SEC chairman, the controversial cryptocurrency regulations he has pushed for during his tenure will also fade away. With a potentially better new chairman taking office, the legal framework for the cryptocurrency market may see new developments, and market transparency and compliance will still be the core issues for the future.