The SEC Chairman says that Bitcoin is the only cryptocurrency that is a commodity. In his recent statements, Gary Gensler increased the pressure on altcoin projects.
SEC Chairman warns about these altcoin projects
Gary Gensler stated that Bitcoin (BTC) is the only cryptocurrency that the SEC considers outside its regulatory scope. According to the SEC Chairman, Bitcoin is the only cryptocurrency subject to regulation by the CFTC.
Gensler covered these statements in an interview with CNBC earlier today. Following Gensler’s comment, it is clear that the SEC considers all other coins, including Ethereum (ETH), to be cryptocurrencies under regulatory oversight. Gensler’s comments on altcoin projects include:
In many altcoin projects, the Public is hoping for a return, just like any other financial asset we call securities. Many of these crypto assets have key security features… All I can say is Bitcoin… it is a commodity.
https://twitter.com/DocumentingBTC/status/1541437342401150982
Since 2018, many crypto players believe Ethereum is also a commodity, after William Hinman, the SEC’s former director of Corporate Finance, stated in his controversial speech that the second-largest cryptocurrency is a commodity.
However, Gensler, who was not responsible for the affairs of the SEC at the time, does not seem to agree with Hinman’s classification of Ethereum, as he refused to include ETH in the list of cryptocurrencies that should be regulated by the CFTC.
John Deaton’s comments on Gary Gensler statements
John Deaton, representing the Ripple community in the Ripple and SEC lawsuit, said on Twitter today:
What did me and my 68 thousand friends say from the beginning. Every altcoin is in danger.
https://twitter.com/JohnEDeaton1/status/154418705409679360
Are other altcoin projects at risk?
In late 2020, the SEC found Ripple and its two executives guilty of running an unregistered securities offering. The case has been going on for over a year. Meanwhile, some lawyers estimate the case could be finished by March next year.
The SEC chief only accepts Bitcoin as a commodity. Therefore, other cryptocurrencies are expected to suffer a similar fate as Ripple. It’s only a matter of time before the SEC files a new lawsuit against these crypto projects.
Finally, Ripple CEO Brad Garlinghouse has approved a move outside the US if the SEC loses its case. Now Ripple is in the midst of a legal battle, defending the sale of XRP and the altcoin’s non-security position since December 2020. cryptocoin.com Ripple’s former CTO Jed McCaleb continues to sell XRP. In fact, McCaleb has sold over 40 million XRPs in the last 10 days.
