Gensler answered that this does not fall under the SEC’s duties and that the U.S.’s approach is different from that of China. Representative Ted Budd initially put forward the question during a video conference that took place at this time.
Gary Gensler, Chairman of the U.S. SEC, has said that the regulator has no plans to ban cryptocurrency in the USA.
US SEC Won’t Ban Cryptocurrency
His statements had been made in response to Representative Member Ted Budd, who noticed that China has been on a “warpath” against cryptocurrency since 2013. Budd drew attention to the country’s ban on crypto transactions last month.
Particularly, Gensler stated the U.S.’s “approach is really quite different” from that of China. “It’s a matter of how we get the cryptocurrency field within the investor-consumer protection that we’ve got,” Gensler stated regarding the SEC’s own duties. He also noted that different departments are confronting issues around anti-money laundering, tax compliance, and financial stability issues.
On further questioning, he added that restricting cryptocurrency to make manner for a government-backed digital currency “would be up to Congress.” He explained that the SEC is just capable of work with the authority that it has been given.
The U.S. SEC has traditionally regulated cryptocurrencies that may be labeled as securities, a class that features most new tokens which are offered by firms as a part of an ICO or different offering. The SEC views these assets as posing a danger to investors.
As such, the SEC has little interest in regulating long-established cryptocurrencies with no preliminary sale similar to Bitcoin.
China’s Crypto Ban Sparks Discussions
China’s recent decision to impose a ban on cryptocurrency transactions and mining has resulted in plenty of discussion about whether an identical coverage could be applied in the U.S.
On Sept. 30, U.S Federal Reserve Chairman Jerome Powell directly addressed the issue, stating that he has “no intention” of banning crypto, although stablecoins may be introduced under laws.
Cryptocurrency bans should be understood in light of the fact that most governments are only able to banning businesses from working with cryptocurrency. Bitcoin’s distributed community permits peer-to-peer transactions no matter government policy.