SEC has No Plan to Ban Crypto, Congress Must Decide

Gary Gensler, Chairman of the SEC, stated that the SEC does not plan to ban cryptocurrency like China. He said that Congress would have to decide whether to ban cryptocurrencies. Jerome Powell, Chairman of the Federal Reserve, stated that the Fed has no plans to restrict or ban the use cryptocurrency.

Cryptocurrency Won’t Be Banned by the SEC

During Tuesday’s hearing before the U.S. House Committee on Financial Services, Gary Gensler (chair of the U.S Securities and Exchange Commission) answered a question regarding whether there was a plan to ban cryptocurrency.

The virtual hearing, which lasted four hours and was titled “Oversight Commission of the U.S Securities and Exchange Commission: Wall Street’s Cop is Finally Back on the Beat”, was hosted by Maxine Waters, Committee Chairwoman, and Patrick McHenry.

The meeting was interrupted by Ted Budd, a North Carolina representative who asked Gensler whether he planned to ban cryptocurrency. Gensler began his statement by saying: “China has been on a warpath against cryptocurrencies, it seems since 2013. We’ve seen them implement bans on mining, initial coin offerings [ICOs], cryptocurrency exchanges, and their most recent move, an outright ban on cryptocurrencies themselves.”

Congressman Budd asked: “Chairman, do you support what China has done, and is the SEC planning on implementing similar bans?”

Gensler replied:

I’m familiar with a number of the things that you mentioned in terms of the People’s Republic of China. I think our approach is really quite different.

“It’s a matter of how do we get this field within the investor and consumer protection that we have, and also working with bank regulators and others,”

The chairman of the SEC continued. He stressed that crypto must be included in anti-money laundering laws and tax compliance by the Treasury Department. He added that there could also be a financial stability problem that stablecoins could cause.

Rep. Budd repeated his question because Gensler didn’t directly answer about plans to ban crypto.“But no bans that you are interested in implementing via the SEC as China has done, really to funnel everyone through their own digital currency?”

The SEC chairman replied:

No, that would be up to Congress.

“We have been working with the authority you’ve given us,” Gensler clarified. He added that many tokens do meet the tests of being a security, emphasizing that it is important to “bring them within the investor protection remit of the SEC.”

Recent. Rep. Budd also questioned Jerome Powell, Chairman of the Federal Reserve, whether there were plans to ban cryptocurrency. Powell also stated that there were no plans to restrict or ban cryptocurrency use.

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