{"id":721,"date":"2022-07-02T04:45:05","date_gmt":"2022-07-02T04:45:05","guid":{"rendered":"https:\/\/solanacrypto.news\/2022\/07\/02\/the-secs-chair-makes-game-changing-crypto-statement-as-price-of-bitcoin-ethereum-bnb-xrp-terras-luna-solana-cardano-and-dogecoin-turn-mixed\/"},"modified":"2022-07-02T04:45:05","modified_gmt":"2022-07-02T04:45:05","slug":"the-secs-chair-makes-game-changing-crypto-statement-as-price-of-bitcoin-ethereum-bnb-xrp-terras-luna-solana-cardano-and-dogecoin-turn-mixed","status":"publish","type":"post","link":"https:\/\/solanacrypto.news\/2022\/07\/02\/the-secs-chair-makes-game-changing-crypto-statement-as-price-of-bitcoin-ethereum-bnb-xrp-terras-luna-solana-cardano-and-dogecoin-turn-mixed\/","title":{"rendered":"The SEC\u2019s Chair Makes Game-Changing Crypto Statement As Price Of Bitcoin, Ethereum, BNB, XRP, Terra\u2019s Luna, Solana, Cardano And Dogecoin Turn Mixed"},"content":{"rendered":"
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<\/p>\n

Gary Gensler <\/p>\n

<\/fbs-accordion>Getty Images<\/small>
\n <\/figcaption><\/figure>\n

Uncertainty continues to torment crypto investors. <\/p>\n

After last week\u2019s dip, the crypto market turns mixed. The bitcoin price is down 3% to just under $20,300 while Ethereum\u2019s price is up 3% to $1,160. Binance rose 5.6% over the past week, while XRPXRP<\/a>
\n <\/fbs-ticker> saw a 4.4% gain. CardanoADA<\/a>
\n <\/fbs-ticker> is down 1.3%, Dogecoin 8.3%, and Solana is up 0.4%.<\/p>\n

Meanwhile, this past Monday the Securities and Exchange Commission (SEC) Chair Gary Gensler made what many consider a game-changing statement that might clear up some of the uncertainty in the crypto market.<\/p>\n

In a recent CNBC interview addressing crypto regulation, Gensler singled out bitcoin as the only cryptocurrency he would label as a commodity. \u201cSome like bitcoin, and that\u2019s the only one I\u2019m gonna say\u2026my predecessors and others have said, they\u2019re a commodity,\u201d he said.<\/p>\n

The rest of the cryptocurrencies, he added, should be classified as securities and regulated by the SEC: \u201cMany of these financial assets, crypto financial assets have the key attributes of a security\u2026 the investing public is hoping for a return just like when they invest in other financial assets we call securities.\u201d<\/p>\n

<\/p>\n

Zooming Out<\/h3>\n

Gensler\u2019s statement is a sequel to the landmark bipartisan crypto legislation I wrote about last week:<\/p>\n

\u201cThe Responsible Financial Innovation Act<\/em> seeks to classify digital assets into securities and commodities and regulate them accordingly. This will \u2018give digital asset companies the ability to determine what their regulatory obligations will be and give regulators the clarity they need to enforce existing securities and commodities trading laws.\u2019 For example, bitcoin and ether, which fall into the \u2018commodity\u2019 bucket, would be regulated by the Commodity Futures Trading Commission (CFTC).\u201d<\/p>\n

The SEC\u2019s unofficial validation of bitcoin as a commodity brings the apex cryptocurrency one step closer to the store of value commodity status similar to gold. It could also speed up the approval of a bitcoin spot ETF (which would <\/em>be under the purview of the SEC). <\/p>\n

BitcoinBTC<\/a>
\n <\/fbs-ticker> advocates met the news with a gasp of delight.<\/p>\n

Digital asset fund manager Eric Weiss tweeted: \u201cGensler is the 2nd consecutive SEC Chair to declare that bitcoin is a commodity, making it all but impossible for this classification to be altered in the future. Very significant indeed.\u201d<\/p>\n

And Microstrategy CEO, Michael Saylor, stated that the labeling of bitcoin as a commodity \u201cis essential for any treasury reserve asset.\u201d He says the classification \u201callows politicians, agencies, governments, and institutions to support bitcoin as a technology and digital asset to grow the economy and extend property rights and freedom to all.\u201d <\/p>\n

On the other hand, Gensler hints that regulatory watchdogs still view even major altcoins as purely speculative securities with little utility. And if the Responsible Financial Innovation Act<\/em> formalized them as such, it could create extra legal and tax barriers to their adoption.<\/p>\n

Looking Ahead<\/h3>\n

Bitcoin was largely built on the promise of a decentralized, digital store of value, but so far, it hasn\u2019t acted as such. <\/p>\n

Over the past few years, bitcoin has become increasingly correlated to the tech-heavy Nasdaq index. And instead of protecting portfolios, the supposed \u201cdigital gold\u201d has grown into a high beta version of growth stocks.<\/p>\n

However, if regulators officially classified bitcoin as the first digital commodity, we\u2019d likely see higher institutional adoption. This could decorrelate bitcoin from growth\/tech stocks as well as altcoins and help it finally fulfill its promise.<\/p>\n

That\u2019s bitcoin\u2019s key differentiator that could end up being its biggest driver in the long run.<\/p>\n

Stay ahead of the crypto trends with <\/em>Meanwhile in Markets<\/em><\/a>. Every day, I put out a story that explains what\u2019s driving the crypto markets.<\/em><\/p>\n

Ed note: Investing in crypto is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.<\/em><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Gary Gensler Getty Images Uncertainty continues to torment crypto investors. After last week\u2019s dip, the crypto market turns mixed. The bitcoin price is down 3% to just under $20,300 while Ethereum\u2019s price is up 3% to $1,160. Binance rose 5.6% over the past week, while XRPXRP saw a 4.4% gain. CardanoADA is down 1.3%, Dogecoin […]<\/p>\n","protected":false},"author":1,"featured_media":722,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rank_math_lock_modified_date":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-721","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/solanacrypto.news\/wp-json\/wp\/v2\/posts\/721","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/solanacrypto.news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/solanacrypto.news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/solanacrypto.news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/solanacrypto.news\/wp-json\/wp\/v2\/comments?post=721"}],"version-history":[{"count":0,"href":"https:\/\/solanacrypto.news\/wp-json\/wp\/v2\/posts\/721\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/solanacrypto.news\/wp-json\/wp\/v2\/media\/722"}],"wp:attachment":[{"href":"https:\/\/solanacrypto.news\/wp-json\/wp\/v2\/media?parent=721"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/solanacrypto.news\/wp-json\/wp\/v2\/categories?post=721"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/solanacrypto.news\/wp-json\/wp\/v2\/tags?post=721"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}