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- SEC chief Gary Gensler has been questioned about the possibility of a cryptocurrency ban like China today.
- Gensler replied that this does not fall within the SEC’s duties, and that the approach of the United States is different from that of China.
- Representative Ted Budd initially raised the question during a video conference held today.
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Gary Gensler, Chairman of the US Securities and Exchange Commission, stated that the regulator has no plans to ban cryptocurrency in the US.
SEC will not ban encryption
Gensler stated that the US Securities and Exchange Commission has no plans to ban cryptocurrencies during a video conference with members of Congress held today.
His remarks were made in response to Representative Ted Budd, who noted that China had been on a “war path” against cryptocurrencies since 2013. Budd drew attention to the country’s ban on crypto transactions last month.
Specifically, Gensler stated that “the approach of the United States is really very different” from that of China. “It’s a matter of how we get it [the cryptocurrency] In the area of consumer and investor protection we enjoy,” Gensler said regarding the duties of the Saudi Electricity Company. He also noted that other departments face issues related to 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 it has been given.
The US Securities and Exchange Commission has historically regulated cryptocurrencies that can be classified as securities, a category that includes most new tokens sold by companies as part of an ICO or other offering. The SEC considers these assets to be a risk to investors.
As such, the SEC is not interested in regulating long-established cryptocurrencies without an initial sale like Bitcoin.
Chinese Cryptocurrency Ban Sparks Debate
China’s recent decision to ban cryptocurrency trading and mining has led to a lot of debate about whether a similar policy can be implemented in the United States.
On September 30, US Federal Reserve Chairman Jerome Powell addressed the issue directly, stating that he had “no intention” of banning cryptocurrencies, even though stablecoins may be placed under regulation.
Cryptocurrency ban should be understood in light of the fact that most governments are only able to ban companies from doing business with cryptocurrency. The distributed Bitcoin network allows peer-to-peer transactions regardless of government policy.
Disclaimer: At the time of writing this author owns less than $75 worth of Bitcoin, Ethereum, and altcoins.
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