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

Bitcoin has become an integral part of New York City Mayor Eric Adams’ financial strategy, as he boldly embraced the cryptocurrency and positioned the city as a thriving hub for the industry.

However, an unfortunate oversight occurred when Adams mistakenly failed to disclose a certain aspect of his involvement with Bitcoin, a misstep that stemmed from his belief that it did not qualify as a security, according to his team.

Renowned for his outspoken support of Bitcoin, Adams, who previously served as a police officer, wholeheartedly advocates for the widespread adoption of the cryptocurrency. 

In a bold move, he even opted to receive a portion of his salaries in Bitcoin, favoring the decentralized digital currency over traditional fiat currencies.

Bitcoin: A Currency, Not a Security, Says Adams’ Team

In his comprehensive 2022 financial disclosure report, the mayor encountered a significant oversight. When specifically asked whether he held any securities, including stocks, bonds, ETFs, mutual funds, or cryptocurrencies, with a market value of $1,000 or more at the end of 2022, he answered “no.” 

However, upon closer examination, it was discovered that his Bitcoin and Ether holdings were not included in the disclosure. The mayor’s team promptly acknowledged the error and assured that an amendment would be made to rectify the situation.

Fabien Levy, Adams’ press secretary, revealed to The New York Daily News on Thursday that the reason behind the omission of the mayor’s crypto holdings was a misunderstanding of the question posed in the disclosure report.

According to Levy, Adams mistakenly believed that the question only encompassed securities, failing to recognize that it also encompassed currencies, including cryptocurrencies like BTC and Ether.

Bitcoin still maintains its footing past the $30K territory. Chart: TradingView.com

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

In shedding further light on the classification of Bitcoin, it is essential to consider the statements made by Securities and Exchange Commission (SEC) Chair Gary Gensler. In a June interview, Gensler explicitly stated that the crypto is not categorized as a security, emphasizing that it falls under the classification of a commodity. 

Gensler said:

“Some, like Bitcoin, and that’s the only one, Jim, I’m going to say because I’m not going to talk about any one of these tokens [that] my predecessors and others have said [are] a commodity.”

The distinction between currencies and securities within the realm of cryptocurrencies can indeed be intricate and nuanced.

While Gensler refrained from discussing specific tokens apart from Bitcoin, his remarks underscored the unique status of the pioneering cryptocurrency.

Featured image from Getty