- According to a recent interview with Coinbase CEO Brian Armstrong, he revealed what the SEC chairman told him. Apparently, this might not be the first time Gary Gensler is saying it.
- Before the SEC charged Coinbase, they told them to delist other cryptocurrencies other than Bitcoin. Their reason was that it wasn’t a cryptocurrency.
The crypto industry was confused after it made the news that Bitcoin is no longer a cryptocurrency. This was after Coinbase CEO Brian Armstrong released a vital piece of information. Ultimately, the SEC tried to make Coinbase play to its tunes before charging them to court. Before their lawsuit, the SEC told Coinbase that Bitcoin wasn’t a cryptocurrency. On the note, it wasn’t also a security. This has led to questions of what is really Bitcoin?
What is Bitcoin?
Bitcoin is a digital currency with the aim of disrupting traditional financial systems. Satoshi Nakamoto is the brain behind this creation. Bitcoin represents a decentralized financial ecosystem without the censorship of the government. Furthermore, it allows people to make financial decisions and be financially free.
No matter the definition by the US Securities and Exchange Commission, Bitcoin remains the pioneer crypto. It spearheaded the creation of cryptography, an ultra-secure type of encryption. The blockchain became heavily functional due to Bitcoin. However, early Bitcoin enthusiasts expanded and created other cryptocurrencies. Despite the claim by the SEC, it doesn’t change the status of Bitcoin as the pioneer cryptocurrency.
Coinbase CEO Narrates How The SEC Declared Bitcoin As Not a Cryptocurrency
Coinbase continues to battle with the Securities and Exchange Commission for the longest time. However, a new twist emerged in the drama after Coinbase CEO made an important revelation. He narrated how the SEC wanted them to delist every cryptocurrency in their exchange apart from Bitcoin. Apparently, the SEC said Bitcoin wasn’t a security. Classifying cryptocurrencies as securities is something the SEC is known for.
“We really didn’t have a choice at that point. Delisting every asset other than bitcoin, which by the way is not what the law says, would have essentially meant the end of the crypto industry in the US,” Coinbase CEO said. However, Coinbase preferred to go to court and still battling the case.
Why is BTC Not A Security?
There’s why Bitcoin is not a security, according to the Securities and Exchange Commission. The SEC’s submission of why Bitcoin is not a security is straightforward. Apparently, the SEC claims that Bitcoin wasn’t initially created to raise money.
Even more, the creator of Bitcoin has no entity nor verifiable identification. In other words, Bitcoin does not need managers or project developers to function.
In conclusion, the Securities and Exchange Commission gave reasons Bitcoin isn’t a security. But that doesn’t mean it is not a cryptocurrency. In fact, it is the first and pioneer crypto in the industry. Apparently, the SEC doesn’t consider Bitcoin as security because it is non-profit and open-source.
The US SEC is deluded. What is crypto without Bitcoin?