SEC Chair Gary Gensler says the US won’t ban crypto

Gensler, however, notes that a prohibition could beryllium imposed by the US Congress if it chooses

The US has nary plans to prohibition cryptocurrencies successful the aforesaid mode arsenic China, the Securities and Exchange Commission (SEC) Chair Gary Gensler confirmed connected Tuesday.

The SEC main said this during a House Committee connected Financial Services hearing.

The comments came arsenic portion of a reply to Rep. Ted Budd, who had asked Gensler whether the regulator was reasoning of taking the way of China successful banning cryptocurrencies successful the United States successful a bid to person a palmy cardinal slope integer currency (CBDC).

In his response, Gensler said the securities watchdog cannot prohibition crypto and had nary specified plans. He added that imposing specified a prohibition "would beryllium up to Congress".

The SEC Chair's comments astir cryptocurrencies reflector those Federal Reserve Chair Jerome Powell made to Congress past week. The Fed Chair told lawmakers during the House Financial Services Committee proceeding that determination was nary program to enforce a prohibition connected cryptocurrencies.

SEC eyeing regularisation of exchanges and stablecoins

While the Fed and the SEC some explicit nary tendency to prohibition Bitcoin and different cryptocurrencies, Gensler wants to spot the assemblage decently regulated. In a effect to a question connected regulation, the SEC brag noted that though caller exertion could beryllium revolutionary, it tin lone thrive erstwhile it falls wrong a regulatory framework.

Gensler besides eyes stringent regulatory measures against cryptocurrency exchanges and projects wrong the decentralised concern (DeFi) space.

One mode of ensuring regulatory oversight successful crypto is to person exchanges register, the SEC Chair added. This should see decentralised exchanges (DEXs) that "don't instrumentality custody" but inactive person a centralised protocol and frankincense request greater nationalist policy.

Another country Gensler expounded connected was the contented of stablecoins and crypto tokens. For the former, the regulator believes they tin airs strategy risks, portion a bulk of tokens could extremity up being classed arsenic securities.

Despite these comments, the regulatory outlook for crypto successful the US remains unclear, which is simply a origin that's keeping respective mainstream companies from trading crypto. According to Gensler, the regulatory situation volition rapidly streamline if there's coordination betwixt the Commodities Futures Trading Commission (CFTC) and the SEC.