o everyone’s surprise, Gary Gensler the SEC Chair, has reaffirmed to the crypto community that Bitcoin is not a security under USA federal law. This statement is aligned with the recent approval of the Bitcoin spot ETF earlier this year.
Criticism of Crypto Industry
Although clarity regarding Bitcoin has been settled, Gary Gensler criticizes the crypto market as a whole, arguing that there are no established regulations regarding other cryptocurrencies and sectors within the industry. Furthermore Gensler accuses many businesses as ignoring rules and regulation, and are lacking compliance.
Ethereum's Ambiguous Status
On the other hand, Ethereum’s status is still unclear, and the crypto community is looking for clear answers. The good news is that the SEC has recently approved the ethereum spot ETF which provides more confidence for crypto investors that ethereum is not going to be classified as a security.
Congressional Concerns
Multiple US lawmakers have criticized the lack of clarity from the SEC regarding cryptocurrencies. In consequence, this has suppressed innovation in the USA market.
SEC-Crypto Tension: Rules vs. Innovation
Bitcoin’s status as being classified as a non security is clear and obvious. However, the regulatory situation for the broader crypto market is still uncertain and is causing doubts for investors. Gensler's remarks reveal the lasting conflict between revolutionary progress in the crypto field and the SEC's goal of investor protection.
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