Shock Confession from SEC Chairman: These Coins Are Not Securities!

In a recent 2018 video, Gary Gensler, the current head of the United States securities regulator, is seen stating that several cryptocurrencies are “not securities.” The video, which attracted attention on social media platforms, captured a moment from a Bloomberg event for institutional investors. Here are the details of some of the statements of the SEC chairman…

SEC Chairman’s confession surprised

During the event, Gensler, then a professor at the Massachusetts Institute of Technology (MIT), made a remarkable statement, citing Bitcoin, Ethereum, Litecoin, and Bitcoin Cash as examples of cryptocurrencies that are not considered securities. This statement contrasts with Gensler’s recent actions as head of the Securities and Exchange Commission (SEC), where he has taken a stricter approach towards the crypto industry.

As we reported on cryptokoin.com, since taking on his duties with the SEC, Gensler has expressed his belief that most cryptocurrencies, with the exception of Bitcoin, should be classified as securities. The regulator has filed lawsuits identifying at least 68 cryptocurrencies as securities. However, the four mentioned in the 2018 video are not included in this list.

Interestingly, Gensler’s views on Ethereum have also changed. When asked whether Ether should be considered a security at a hearing before the US House Committee in April, Gensler declined to provide a direct answer. This stands in contrast to his previous comments, captured in videos from his time at MIT, where he classified a significant portion of the market, including Ether, as non-securities.

He also praised Algorand

It is noteworthy that it is not the first time that the videos in which Gensler expresses his similar views on cryptocurrencies have appeared. In a 2019 video released in April, Gensler praised Algorand as “great technology.” But within the same week, the SEC filed a lawsuit against Bittrex, alleging that Algorand is a security. This has led to accusations of hypocrisy within the crypto community as Gensler’s earlier statements seemed inconsistent with actions taken by the SEC.

While Gensler made these comments before assuming the SEC chairmanship, many in the crypto space have criticized his perceived inconsistencies. One lawmaker even introduced a bill aimed at removing Gensler from his post, citing allegations of abuse of power. As the debate over the regulatory framework for cryptocurrencies continues, Gensler’s contrasting views, both past and present, serve as a reflection of the complexities surrounding the classification and surveillance of cryptoassets.