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SEC crypto chronicles- Gary Gensler affirms BTC as commodity

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According to Gary Gensler, the United States Securities and Exchange Commission (SEC) chairman, Bitcoin is a commodity. In a recent interview with CNBC, he elaborated on the SEC's plans to collaborate with the Commodity Futures Trading Commission (CFTC) and banking regulators in order to oversee the crypto sector.

In an interview with Mad Money presenter Jim Cramer on CNBC on Monday, SEC Chairman Gary Gensler reiterated his views on cryptocurrencies, namely Bitcoin (BTC).

The SEC head, stated that while several crypto-financial assets like Ethereum (ETH), Dogecoin, etc. contain the essential characteristics of securities, Bitcoin is the "only one" he feels confident officially classifying as a commodity:

"Some, like Bitcoin — and that's the only one I'm going to say because I'm not going to talk about any one of these tokens, but my predecessors and others have said Bitcoin is a commodity."

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Crypto community reaction to SEC chair interview

The crypto community raised questions about the statement's influence on Grayscales' proposed Bitcoin exchange-traded fund (ETF), and the omission ETH as a commodity was questioned.

The comments sparked discussion over Grayscale's proposal to turn its Bitcoin Trust into a spot-based ETF, which is anticipated to get a yes-or-no answer from the SEC on July 6.

Even though the regulator and the Commodity Futures Trading Commission (CTFC) earlier concurred that Ethereum (ETH) was a commodity exactly like BTC, Gensler chose not to specify whether he placed ETH in the same commodities boat. This was picked up on Twitter.

The prices of digital assets like Bitcoin and Ethereum have plummeted sharply in recent weeks, though they have lately shown signs of stabilization.

Bitcoin has decreased by around 60% over the last six months, but it has increased by roughly 1% in the past week.

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Author: Priya Kumari

Author: Priya Kumari

Priya is a passionate content writer and the co-founder of Finendorse. She is an enthusiastic crypto investor and has a huge interest in the upcoming digitisation age.

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