Gary Gensler Says Bitcoin is Not a Security, Refuses to Say It’s a Commodity

Vignesh Karunanidhi
SEC Remains Tight-Lipped on Spot Bitcoin ETF Approval Timeline
Source: Bloomberg

During recent testimony before Congress, SEC Chair Gary Gensler reiterated his belief that Bitcoin is not a security but declined to state whether it is a commodity.

When asked by Congressman Patrick McHenry if he believes Bitcoin is a security, Gensler responded that he, SEC staff, and prior chairs have said it does not meet the Howey Test that defines securities under US law.

Gary Gensler showed reluctance to answer whether Bitcoin is a commodity

However, when McHenry followed up, asking if that meant Bitcoin was therefore a commodity, Gensler showed reluctance. He stated that Bitcoin is not a security but that “the test is otherwise for other laws” regarding its categorization.

During the testimony, McHenry also criticized SEC Chair Gary Gensler over his lack of transparency around interactions with collapsed crypto exchange FTX and its founder, Sam Bankman-Fried.

Also read: US Congressman Threatens SEC’s Gary Gensler With Subpoena

McHenry expressed dissatisfaction with Gensler’s “lack of responsiveness” to Congressional oversight efforts related to FTX’s dramatic downfall. He deemed Gensler’s unwillingness to disclose details of his dealings with FTX and Bankman-Fried unacceptable.

Gensler has always tried to evade such questions in the past that determine the true nature of certain crypto assets. The SEC is also steadfast in its scrutiny of the crypto industry, while other nations embrace it.