SEC Chair Gary Gensler Refuses to Comment on Whether Ether is a Security

SEC Chair Gary Gensler Refuses to Comment on Whether Ether is a Security

During a Q&A section at the Aspen Security Forum, Gary Gensler said that the Howey Test is clear enough in order to determine whether a certain cryptocurrency asset is a security.He, however, dodged a question about Ethereum’s regulatory status after repeatedly stating that Bitcoin is a commodity in the past. Back in 2018, Gensler claimed that there was a strong case for Ether to be classified as a security. In his recent speech, Gensler said that he agrees with Jay Clayton, his predecessor when it comes to initial coin offerings:

It crosses chairs, it crosses party lines, it crosses different philosophies.

During his tenure, Clayton proclaimed that every initial coin offering was a security.While former top SEC official William Hinman declared that Ether wasn’t a security, the agency later clarified (on numerous occasions) that he merely expressed his personal views. As reported by U.Today, the SEC boss said that he was concerned about decentralizing finance in a Bloomberg interview. Gensler also mentioned that there were “significant gaps” in DeFi when it comes to investor protection. He also said that the SEC could “definitely” use some more staff in order to cope with crypto regulations.

Gensler is open to a Bitcoin ETF

In his speech, Gensler said that he was open to approving a Bitcoin-tied exchange-traded fund:

I'm looking forward to what staff says about these filings.

The SEC hasn’t greenlit a crypto ETF as new proposals keep piling up, with Cathie Wood’s Ark becoming the latest player to join the race.Gensler believes that crypto needs rules if it aspires to reach widespread adoption.