SEC recognizes Bitcoin as a commodity

The head of the Securities and Exchange Commission (SEC), Gary Gensler, said yesterday that Bitcoin is the only cryptocurrency that falls under the definition of a commodity.

Discussions in the crypto community have resumed regarding the correctness of such a definition. Questions have also arisen regarding other cryptocurrencies: “What then are other cryptocurrencies, and why were large cryptocurrencies, in particular, such as Ethereum, not mentioned in this definition?”.     

Cryptocurrency media outlets are trying to model how Gensler’s definition might impact Grayscale’s Bitcoin ETFs and the crypto market.

Bitcoin ETF

Grayscale has previously applied to change its Bitcoin ETF to a spot ETF, with the SEC decision on the matter expected on July 06.

According to James Seiffart, ETF Analyst at Bloomberg Intelligence, Gensler’s remarks are generally positive for Bitcoin. However, whether this will be enough to decide on a spot ETF is still in question.

“This is not unexpected news from Gensler, but certainly, his statement is positive. Unfortunately, this is not enough to approve the conversion of $GBTC to Bitcoin Spot ETF. In our opinion, the chances of getting approved by the SEC next week (or this week) are close to zero,” James Seiffart tweeted.

Eric Balciunas, the senior ETF analyst at Bloomberg, had a similar sentiment. In his opinion, the chances that the Grayscale fund will be allowed to be converted into an ETF are negligible.

What’s up with Ethereum

Additional questions from the crypto community have also arisen regarding the second largest cryptocurrency by capitalization, Ethereum. In his speech, the head of the SEC noted only Bitcoin, without mentioning Ethereum or other cryptocurrencies. However, earlier, the SEC and the Commodity Futures Trading Commission (CTFC) recognized Ethereum as a commodity along with Bitcoin.

“What do you think about why Gensler did not mention Ethereum as a commodity today? It seems that Gensler did not go into the details of all the coins,” – many reputable users wonder.

Positive for Bitcoin

Everyone agrees that Gensler’s designation of Bitcoin as a commodity is a positive signal for the first cryptocurrency.

Michael Saylor, traditionally optimistic about Bitcoin, expressed his view that governments need to accept Bitcoin as a reserve asset, thus allowing them to support the growth of their economies. In his opinion, Bitcoin is undoubtedly a commodity that should be used as a reserve asset. As a result, it will positively impact economic growth and the introduction of new technologies.

And Eric Weiss, the founder of Blockchain Investment Group, noticed that Gensler, the second chairman of the SEC, called the leading crypto coin a commodity, which means that it will be difficult to change this definition in the future.

Meanwhile, against positive news for Bitcoin, its value fell from $21478 to $20650. Ethereum fell from $1234 to $1170.

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