As the long-awaited deadline for the approval of a bitcoin (btc) approaches Investment fund (ETF), the crypto community on X (formerly Twitter) is immersed in a debate over the classification of btc as a security.
Even though regulators classify the largest cryptocurrency as a commodity, comments from Securities and Exchange Commission (SEC) Chairman Gary Gensler have once again sparked discussions about whether btc should be considered a security.
On February 27, President Gensler crypto-investors-but-differentiates-bitcoin#:~:text=On%20February%2027%2C%20Gensler%20made,stature%20and%20resolutely%2Ddecentralized%20nature.” target=”_blank” rel=”noopener nofollow”>commented on the state of the cryptocurrency market, suggesting that “everything but bitcoin” should be considered a security within the nascent cryptocurrency industry.
These comments have led Ripple Chief technology Officer (CTO) David Schwartz to counter a claim made by a bitcoin maximalist, stating that bitcoin cannot be classified as a security.
Battle over bitcoin security status
The debate arose when btc maximalist Bruce Fenton responded to a update on the black rock IShares S-1 Filingexpressing concern that the SEC may view bitcoin as a security.
Fenton fixed that he would personally fight such classification in court, arguing that bitcoin is freely distributed code and protected as speech, referencing the EFF Bernstein v. Department of Justice (DOJ) case. Fenton stated:
If the SEC ever tries to say that bitcoin is a security, I will personally fight this in court and win. bitcoin is a code that is given away and the EFF Bernstein vs DOJ case says that code is speech. Speech is protected in the US.
In response to Fenton's claim, Ripple CTO Schwartz offered his perspective: indicating:
This is not fundamentally different from arguing that books are speech and therefore the government cannot prohibit me from hitting them with a book.
Ripple CTO weighs in on government regulatory authority
Schwartz delved into the concept, highlighting that code, like everything else, is considered speech only when it communicates ideas to individuals. However, the code stops being a word when it fulfills other functions.
Schwartz emphasized that the government has the authority to prohibit functional outcomes that it deems undesirable, even if they are achieved through means considered speech in other contexts.
Ripple's CTO further stated that if expressive speech is significantly charged, individuals can challenge such regulations as they apply.
The ongoing debate over bitcoin classification as value It adds a layer of complexity to the decision-making process around approving a bitcoin ETF.
However, let's assume that the SEC adheres to the president's view on btc classification. Then, This ongoing debate should not serve as an obstacle or excuse to prevent the approval of applications that have the potential to boost the price of bitcoin and enable a substantial influx of investors into the industry.
As the deadline approaches, market participants and enthusiasts are eagerly awaiting the SEC's decision, which will undoubtedly have a significant impact on the future of btc and the crypto industry in general.
At the time of writing, bitcoin (btc) is trading at $44,000, showing a 5% uptrend in the last 24 hours.
Featured image from Shutterstock, chart from TradingView.com
