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SEC Chairman, Gary Gensler Confirms That SEC Has No Plans To Ban Crypto, But Congress Could

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U.S. Securities & Exchange Commission (SEC) Chairman Gary Gensler said the regulator is not planning to ban cryptocurrency.

Read: Federal Reserve Chairman, Jerome Powell Said Fed Has No Intention To Ban Bitcoin Or Crypto



At the House Committee on Financial Services hearing (Video Below) held on October 5, Gensler said the United States will not adopt China’s policy to prohibit digital currencies. 

 

Gensler reiterated that the focus of the government is to ensure that the cryptocurrency industry complies with consumer and investor protection laws, anti-money laundering rules as well as tax laws.

Gensler said:

“It’s a matter of how we get this field within the investor consumer protection that we have and also working with bank regulators and others. How do we ensure that the Treasury department has it within anti-money laundering, tax compliance, Many of these tokens do meet the test of being an investment contract, or a note, or security.”

Read: JPMorgan CEO Says Bitcoin Has No Intrinsic Value And Regulators Will Soon Regulate The Hell Out Of It

 

During the hearing, Gensler’s SEC chief’s remarks were a reflection of his previous thoughts about the regulation of cryptocurrency, which included the requirement for digital asset firms to sign up with the SEC. Gensler said that although crypto exchanges must sign up with the regulator, exchanges that are decentralized could as well be required to adhere to the same rules.

Read: According To Bank Of America Recent Research Cryptocurrency Market Is “Too Large To Ignore”

The SEC chairman continued to discuss his position regarding stable coins, saying that they may pose risks for the economic system. 

Gensler has previously described the stable coins as “poker chips” in the casino. With an estimated 125 billion dollars in stable coins, the market which has increased tenfold in the last year may create system-wide risk.





Gensler stressed that the SEC’s policy will be “very different” than that of the Chinese government and that the ban of any kind on digital assets would need to be enacted by Congress.

Read: Hedge Fund Billionaire Ken Griffin Sees Crypto-Mania As ‘Jihadist Call’ Against Dollar

Whether most of the crypto are securities or not he said:

“I’m not going to get into anyone token, but I think the securities laws are quite clear — if you’re raising money and the investing public, have a reasonable expectation of profits based on the efforts of others, that fits within the securities law.”

Read: President Nayib Bukele Shares First Results Of El Salvador Mining Bitcoin With Volcanoes

Watch Video:

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Albert Brown
Albert Brownhttps://thecryptobasic.com/
Albert Brown is a cryptocurrency investor and journalist who has been in the nascent space since 2017. His love and passion for technological innovations made him delve deeper into the world of blockchain and cryptocurrencies. As a journalist, Brown has written on several crypto-related topics that have been referenced by popular industry players like Tyler Winklevoss, Binance CZ, etc.

Disclaimer: The content is for informational purposes only, may include the author's personal opinion, and does not necessarily reflect the opinion of TheCryptoBasic. All Financial investments, including crypto, carry significant risk, so always do your complete research before investing. Never invest money you cannot afford to lose; the author or the publication does not hold any responsibility for your financial loss or gains.

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