In an interview with CNBC, Gensler argued that the SEC has the authority to oversee the crypto space under existing laws and that this authority is clearly established by law. These statements come amid growing criticism of the SEC’s regulatory role over the cryptocurrency market.

Gensler asked CNBC reporter Joe Kernen, “Is the SEC softening its stance on top cryptocurrencies?” In response to the question, he said, “Bitcoin is not a security and investors can now express their views through ETF products.”

Gensler reminded that the previous SEC chairman did not consider Bitcoin as a security and stated that the SEC’s stance on this issue was consistent. The SEC’s approval of Bitcoin-based ETFs in January is seen as a significant change in the agency’s approach in the crypto space.

Apart from his statements on Bitcoin’s legal status, Gensler took a harsher stance towards altcoins and other crypto assets.

Responding to a question about altcoins by saying, “The situation is different for altcoins,” Gensler argued that the majority of crypto assets other than Bitcoin meet the definition of securities and therefore fall under the jurisdiction of the SEC.

This view is a stance that is frequently criticized by the cryptocurrency industry. Crypto companies and some experts argue that the SEC’s regulatory framework is unclear and hinders innovation in the crypto space.

Gensler avoided answering a question about Donald Trump’s plan to create a Bitcoin strategic reserve for the United States. Reminding that we are in the election period, Gensler stated that it would not be appropriate to express an opinion on this issue. However, he did not make any predictions about the long-term future of Bitcoin in general.

“I don’t know where Bitcoin will be in 20 years, but I think this space will have a hard time building trust,” he said. Drawing attention to the fraud cases and bankruptcies in the cryptocurrency market, Gensler added, “Look at the prominent names in this field two years ago, many of them are now in prison.”

Gensler’s statements can be interpreted as a response to demands for regulatory clarity in the crypto industry. Cryptocurrency advocates argue that the SEC “regulates the industry through litigation” and that this approach leads to uncertainty in the industry.

However, Gensler argues that current laws give the SEC sufficient authority and that changing these laws would further protect cryptocurrency investors. “Disliking the rules does not mean that those rules do not exist,” he said, emphasizing that players in the crypto market must comply with the regulatory framework.

Gensler also stated that building trust in the crypto market is critical for the future of this space. Drawing attention to the fraud and investor losses in the crypto field, the SEC chairman stated that this situation caused a crisis of confidence in the sector and that the players in the sector should make more efforts to gain investor trust.