Bitcoin Not A Security, NYC Mayor Maintains, Following Disclosure Backlash

Bitcoin has turn out to be an integral a part of New York Metropolis Mayor Eric Adams’ monetary technique, as he boldly embraced the cryptocurrency and positioned the town as a thriving hub for the trade.

Nonetheless, an unlucky oversight occurred when Adams mistakenly didn’t disclose a sure side of his involvement with Bitcoin, a misstep that stemmed from his perception that it didn’t qualify as a safety, in response to his crew.

Famend for his outspoken help of Bitcoin, Adams, who beforehand served as a police officer, wholeheartedly advocates for the widespread adoption of the cryptocurrency. 

In a daring transfer, he even opted to obtain a portion of his salaries in Bitcoin, favoring the decentralized digital foreign money over conventional fiat currencies.

Bitcoin: A Foreign money, Not a Safety, Says Adams’ Staff

In his complete 2022 monetary disclosure report, the mayor encountered a big oversight. When particularly requested whether or not he held any securities, together with shares, bonds, ETFs, mutual funds, or cryptocurrencies, with a market worth of $1,000 or extra on the finish of 2022, he answered “no.” 

Nonetheless, upon nearer examination, it was found that his Bitcoin and Ether holdings weren’t included within the disclosure. The mayor’s crew promptly acknowledged the error and warranted that an modification could be made to rectify the state of affairs.

Fabien Levy, Adams’ press secretary, revealed to The New York Day by day Information on Thursday that the explanation behind the omission of the mayor’s crypto holdings was a misunderstanding of the query posed within the disclosure report.

In response to Levy, Adams mistakenly believed that the query solely encompassed securities, failing to acknowledge that it additionally encompassed currencies, together with cryptocurrencies like BTC and Ether.

Bitcoin nonetheless maintains its footing previous the $30K territory. Chart: TradingView.com

SEC Chair Gensler’s Clarification: Bitcoin Is A Commodity, Not A Safety

In shedding additional gentle on the classification of Bitcoin, it’s important to think about the statements made by Securities and Trade Fee (SEC) Chair Gary Gensler. In a June interview, Gensler explicitly acknowledged that the crypto isn’t categorized as a safety, emphasizing that it falls below the classification of a commodity. 

Gensler mentioned:

“Some, like Bitcoin, and that’s the one one, Jim, I’m going to say as a result of I’m not going to speak about any considered one of these tokens [that] my predecessors and others have mentioned [are] a commodity.”

The excellence between currencies and securities inside the realm of cryptocurrencies can certainly be intricate and nuanced.

Whereas Gensler shunned discussing particular tokens other than Bitcoin, his remarks underscored the distinctive standing of the pioneering cryptocurrency.

Featured picture from Getty