No Plan to Ban Crypto, It is as much as Congress – Regulation Bitcoin Information


SEC Chairman Gary Gensler says the SEC has no plans to ban cryptocurrencies like China has. He noted that it was up to Congress to make such a decision. Recently, Federal Reserve Chairman Jerome Powell also said the Fed has no intention of banning or restricting the use of cryptocurrencies.

SEC does not prohibit cryptocurrencies

U.S. Securities and Exchange Commission chairman Gary Gensler answered a question during a hearing before the U.S. House of Representatives Financial Services Committee on Tuesday whether a cryptocurrency ban is planned.

The four-hour virtual hearing titled “US Securities and Exchange Commission Supervision: The Wall Street Cop is finally back on the pulse” was moderated by committee chairman Maxine Waters and ranking member Patrick McHenry.

During the meeting, Rep. Ted Budd of North Carolina asked Gensler if he had any plans to ban cryptocurrencies. The Congressman began by stating, “China has apparently been on a warpath against cryptocurrencies since 2013. We saw how they put in place mining bans and initial coin offerings. ” [ICOs], Cryptocurrency exchanges and their latest move, a complete ban on cryptocurrencies themselves. “

Congressman Budd asked, “Chairman, do you support what China has done and is the SEC planning to introduce similar bans?”

Gensler replied:

I know some of what you said about the People’s Republic of China. I think our approach is really quite different.

“It’s about how we incorporate this field into the investor and consumer protection that we have, and also work with banking regulators and others,” continued the SEC chairman. He also stressed the need to ensure the Treasury Department has crypto under anti-money laundering (AML) and tax compliance laws, adding that there is also “the issue of financial stability that stablecoins could pose”.

With Gensler not responding directly to any plans to ban crypto, Rep. Budd repeated his question: “But not any bans that you want to implement through the SEC, as China did to really guide everyone through their own digital currency? “

The SEC chairman replied:

No, that would be a matter for Congress.

“We worked with the authority you gave us,” Gensler clarified. He added that many tokens pass the tests as security, stressing the importance of “getting them into the SEC’s investor protection mandate.”

Recently. Rep. Budd also asked Federal Reserve Chairman Jerome Powell if the Fed had plans to ban cryptocurrencies. Powell similarly said that there was no intention to ban or restrict the use of cryptocurrencies.

What do you think of Gary Gensler’s comments? Let us know in the comment section below.

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