SEC Chairman Gary Gensler reiterated to Congress this week that the SEC has no plans to ban cryptocurrencies.
In a direct response to North Carolina Congressman Ted Budd regarding any considerations regarding banning crypto to promote a central banking digital currency, or CBDC, Gensler stated, “No, that will be up to Congress.”
The statement came during a four-hour hearing on encryption and DeFi.
SEC . position
Gensler’s comments come just a week after Fed Chairman Jerome Powell echoed similar sentiments. Powell told the House Financial Services Committee that the Fed has “no plans to ban” cryptocurrencies.
However, Gensler reiterated that cryptocurrency exchanges must register with the SEC, and that most tokens will be considered securities. He also added that DeFi platforms will be subject to public policy.
Of course, any regulatory move to ban cryptocurrency in the US is certainly more of an effort than the result is worth. There are increasing numbers of legislators across the United States joining cryptocurrencies, and the access and use of the exchange for American consumers is rapidly increasing.
Ideally, lawmakers and regulators are dealing with a set of facts that seem to hold true for categories like sports gambling and marijuana: outright bans are a waste of time and resources, and everyone is generally better off working toward a healthy, 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
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push and pull
The sentiment comes just days after the Securities and Exchange Commission (SEC) extended the deadline for a decision on a number of Bitcoin ETFs. The commission has faced increasing pressure to take some kind of regulatory stance, not to intervene or otherwise, on cryptocurrencies. Meanwhile, Gensler has been relatively conservative in public statements about the future of cryptocurrencies in the states. Our team at NewsBTC took a deep dive into Gensler’s recent interview with The Washington Post, which left many crypto viewers with more questions than answers.
The Securities and Exchange Commission (SEC) has also been engaged in a back-and-forth battle with Coinbase, leaving the cryptocurrency exchange with little momentum to work with its anticipated Coinbase Lend product. Following the SEC’s threats, Coinbase has dropped its RO project, with Coinbase CEO Brian Armstrong expressing frustration along the way.
However, recent sentiments from Gensler and Powell do not eliminate any kind of potential hurdle for cryptocurrency. Coinbase has also expressed concerns about congressional infrastructure legislation in recent weeks. The full implications, including potential tax implications, of this legislation and cryptocurrencies have yet to be determined.
Related reading | Bitcoin hits $50K, but that’s why bulls aren’t out of the woods
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