SEC will not ban crypto, it’s up to Congress to decide whether to ban it or not, said Gary Gensler. He added that we have a different approach than China. Federal Reserve Chairman has also expressed that they have no intention to ban crypto or limit it.
SEC will not ban crypto:
Ms. Maxin Waters, the chairman of the US House Financial Committee, hosted a virtual hearing titled” Oversight of the U.S. Securities and Exchange Commission: Wall Street’s Cop Is Finally Back on the Beat”. This virtual hearing was co-hosted by Patrick McHenry. Congressman asked a lot of questions about the crypto regulation and other queries for a better understanding to make a law.
In the hearing before the US House Committee on Financial Services on Tuesday, SEC chairman Gary Gensler was asked whether there is a plan to ban the crypto or not. It was Ted Budd who provided a total reference that how China has been trying to stop crypto since 2013. He asked are we going to that path also. Gensler replied to the question by saying:
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 quite different.
The chairman has explained that consumer protection is our priority and they are working with the banks and others to make it happen. SEC will not ban crypto as it is not in their Jurisdiction. He added that Treasury Department must have crypto within anti-money laundering laws and also tax compliance and financial stability that could be raised.
Since Gensler did not directly respond about any plans to ban crypto, Rep. Budd reiterated his question: “But no bans that you are interested in implementing via the SEC as China has done, really to funnel everyone through their digital currency? The SEC Chairman said:
No that would be up to Congress.
Gensler clarified that we do work in the authority provided to us and he also said that some coins meet the tests of being a security. The SEC has thrown the ball into the court of US Congress now. Lets’ see how things go for crypto in the US.
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