CRYPTO

The SEC will not ‘ban’ crypto


Gary Gensler, chairman of the US Securities and Exchange Commission (SEC), reiterated to Congress this week that the SEC has no plans to “ban” cryptocurrency.

In a direct response to North Carolina Congressman Person Ted Bud, Gensler said, “No, it will depend on Congress.”

The statement came during a four-hour long hearing on crypto and DFI.

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Gensler’s comments came just a week after Federal Reserve Chairman Jerome Powell echoed similar sentiments. Powell told the House Financial Services Committee that the Fed had “no plans to ban crypto”.

However, Gensler reiterated that crypto exchanges should be registered with the SEC and that most crypto tokens would be viewed as securities. He further added that DFI platforms are going to be subject to public policy.

Of course, no regulatory action to completely ban cryptocurrency in the United States would undoubtedly be an effort. The number of legislators in the United States is growing, and the availability and use of U.S. consumer exchanges is growing rapidly.

Lawmakers and regulators ideally agree with a fact that seems to be true for categories such as sports gambling and marijuana: complete bans are a waste of time and resources, and everyone is generally better off working towards a healthy but regulated market.

The market cap of crypto tokens not named Bitcoin is in excess of $2T, leading both state and federal regulators to pull out the microscope. | Source: CRYPTOCAP: TOTAL 2 on TradingView.com

Related Reading | Whale Running Currencies Indicate Bitcoin Maturity as a Macro Resource

A push and pull

The feeling comes just days after the SEC extended the decision deadline closer to several bitcoin ETFs. The commission has faced some sort of regulatory position in the vicinity of the crypto, hands off or otherwise under pressure. Gensler, meanwhile, was relatively reserved in a statement to the public about the future of crypto in the states. Our team at NewsBTC dived deeper into a recent Gensler interview with the Washington Post that left many crypto viewers with more questions than answers.

The SEC was also engaged in a back-to-back battle with Coinbase, leaving the crypto exchange with little attraction to work with their expected Coinbase Land product. After the SEC threatened to drop the Coinbase interest-generating project, Coinbase CEO Brian Armstrong expressed frustration along the way.

The recent sentiments of Gensler and Powell do not remove any potential barriers for crypto. Coinbase has expressed concern about congressional infrastructure legislation in recent weeks. The full effects of that law and the potential tax implications around crypto have not yet been established.

Related Reading | Bitcoin prices tap $ 50K, but here’s why bulls don’t come out of the woods

Featured image from Pexels, Charts from TradingView.com



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