Us. Sec Chairman Says The Us. Cannot Ban & Won’t Ban Crypto

Gary Gensler, Chairman of the U.S. SEC, has stated that the regulator has no plans to ban cryptocurrency in the United States.

Gensler stated that the U.S. Securities and Exchange Commission has no plans to ban cryptocurrency during a video conference with members of Congress that took place today.

His statements were made in response to Representative Member Ted Budd, who observed that China has been on a “war path” against cryptocurrency since 2013. Budd drew attention to the country’s ban on crypto transactions last month.

Specifically, 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 have,” Gensler said regarding the SEC’s own duties. He also noted that other departments are confronting issues around anti-money laundering, tax compliance, and financial stability issues.

On further questioning, he added that restricting cryptocurrency to make way for a government-backed digital currency “would be up to Congress.” He explained that the SEC is only able to work with the authority that it has been given.

The U.S. SEC has historically regulated cryptocurrencies that can be classified as securities, a category that includes most new tokens that are sold by companies as part of an ICO or other offering. The SEC views these assets as posing a risk to investors.

As such, the SEC has little interest in regulating long-established cryptocurrencies with no initial sale such as Bitcoin.

China’s recent decision to impose a ban on cryptocurrency transactions and mining has lead to plenty of discussion about whether a similar policy could be implemented 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, though stablecoins may be brought under regulations.