Bitcoin has become an integral part of New York City Mayor Eric Adams’ financial strategy as he boldly embraces cryptocurrency and makes the city a thriving hub for the industry.
However, an unfortunate oversight occurred when Adams accidentally failed to disclose a specific aspect of his involvement with Bitcoin, a misstep stemming from his belief that it did not qualify as collateral, according to his team.
Adams, who is known for his outspoken support for Bitcoin and previously served as a police officer, wholeheartedly advocates for widespread adoption of the cryptocurrency.
In a bold move, he even chose to receive a portion of his salary in Bitcoin, preferring the decentralized digital currency over traditional fiat currencies.
Bitcoin: a currency, not a security, Adams team says
in his comprehensive book 2022 Financial Disclosure Report, the mayor faced great oversight. When asked specifically if he owns 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 replied, “No.”
However, upon closer examination, it was discovered that his Bitcoin and Ether holdings were not included in the disclosure. The mayor’s team immediately acknowledged the error and confirmed that an amendment would be made to rectify the situation.
Fabian Levy, Adams’ press secretary, revealed to the New York Daily News On Thursday, 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 thought the question only covered securities, not realizing that it also included currencies, including cryptocurrencies such as BTC and Ether.
Bitcoin still maintains its footing past the $30K territory. Chart: TradingView.com
SEC Chairman Gensler Clarification: Bitcoin is a commodity, not a security
In shedding more light on the rating of Bitcoin, it is necessary to consider the statements made by the Chairman of the Securities and Exchange Commission (SEC) Gary Gensler. in June interviewGensler explicitly stated that cryptocurrency is not classified 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’ll say because I’m not going to talk about any of these tokens (that) my predecessors and others (they) said are a commodity.”
The distinction between currencies and securities in the cryptocurrency world can be really complex and nuanced.
While Gensler refrained from discussing specific tokens aside from bitcoin, his remarks emphasized the unique position of the leading cryptocurrency.
Featured image from Getty
