Head of SEC Thinks All The Cryptocurrencies Except Bitcoin are Securities
Chairman of the Securities and Exchange Commission (SEC), Gary Gensler said in an interview that in his opinion all the cryptocurrencies that exist globally are securities and should be framed normatively as such.
Now the point is, what are security tokens?
Security tokens are those digital assets granting rights to participate in future income or increase in the worth of issuing company.
According to Gary Gensler, all the transactions made in cryptocurrency except Bitcoin fall under the jurisdiction of SEC.
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According to him, every crypto has a community behind who attempt to promote it by promising financial returns.
But on the other hand, people who are unfamiliar to the industry Bitcoin is known as an asset in its own right which can be categorized more as a commodity, since there is no team at the head of Bitcoin protocol promising returns to investors.
There is no one behind Bitcoin except the mysterious individual Satoshi Nakamoto and the actors manage the Bitcoin’s full nodes and block mining activities in a decentralized manner.
The head of SEC considers Ethereum a security token as it was created back in 2014 out of ICO (Initial Coin Offering) which is a fundraising effort where investors expected their investments to grow in value.
In its ICO, Ethereum was initially sold for $0.311 per token. And considering the price now, it is a big return on initial investment.
I don't understand how is Gary Gensler categorizing Bitcoin not a security while other cryptos are, as there have been people investing in Bitcoin time to time and making profits of the digital currency upon increase in its value.
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