This month we get great news from the United States about the cryptocurrency sector, with more news possible towards the end of the year. October 6, Gary Gensler, head of the United States Securities and Exchange Commission (SEC), confirmed during a hearing by the House Financial Services Committee that the regulator will not ban cryptocurrencies., potentially paving the way for the world’s largest economy to become the global leader in the development of decentralized finance (DeFi) and blockchain technology.
Gensler, who taught a class on cryptocurrencies at MIT, also said that Banning cryptocurrencies is not within the mandate of the SEC and that the only way to legally ban digital assets would be through Congress. “It is a question of how we get this field within the protection of consumers, the investors that we have and also work with banking regulators and others: how do we make sure that the Treasury Department has it within the fight against money laundering. money and tax compliance, “Gensler said. He also added:
“Many of these tokens do meet the test of being an investment contract, a note, or a security.”
US regulators will not ban cryptocurrencies
The SEC’s announcement comes after US Federal Reserve Chairman Jerome Powell said on September 30 that the regulator has no plans to ban Bitcoin (BTC) or other cryptocurrencies during his testimony in Congress. When asked by Rep. Ted Budd, a veteran cryptocurrency advocate and member of the Congressional Blockchain Caucus, if he intended to “ban or limit the use of cryptocurrencies,” Powell responded with a resounding “No. [No tengo] no intention to prohibit them. “
Fed Chair Powell says he has no intention to ban #Bitcoin and cryptocurrencies pic.twitter.com/i2zfRPk1je
– LilMoonLambo (@LilMoonLambo) September 30, 2021
Federal Reserve Chairman Powell says he has no intention of banning Bitcoin or cryptocurrencies
Most of the media that I have been reading headlines “America will not ban cryptocurrencies.” This is true, but it also means something much more significant: The United States will allow the cryptocurrency to grow and accept the community to engage in the process of discussing better ways to regulate the industry.
When the world’s largest economy announces that it will allow cryptocurrencies to exist with its current financial industry – of course, with proper regulation – all other nations should take note and begin to consider opening their doors and regulating the industry in a fair way that stimulates innovation and helps create new jobs.
United States Allows Cryptocurrencies As Adoption Increases
As we have seen, US regulators are incorporating the cryptocurrency industry into their financial system, allowing the traditional banking system to work alongside the rapidly growing new decentralized financial system. This could allow the United States to become a leading country in the development of fintech, blockchain technology, and even the less conventional parts of decentralized finance, such as insurance, trade finance, and fundraising..
From a regulatory point of view, there is a lot of work that still needs to be done by the crypto community and the US government to determine where their interests align and how they can work more closelySo making a smart decision together on how to regulate the industry, including regulating stablecoins, decentralized exchanges, crypto derivatives, and yield farming, just to name a few.
Too it is quite possible that the SEC will approve up to four Bitcoin futures this quarter, as counted by Bloomberg Intelligence. On Oct. 3, the analyst put the chances of the SEC approval of a Bitcoin exchange-traded fund (ETF) at 75%, with ProShares and Valkyrie already leading the way, getting their approvals on Oct. 19. and October 22, respectively.
The United States prepares to lead blockchain technology
It is also nice to note that even US lawmakers are buying Bitcoin. US Senator Cynthia Lummis revealed that she acquired from the world’s largest cryptocurrency on August 16, with a value between $ 50,001 and $ 100,000.
Since the United States government is not going to ban cryptocurrencies and American politicians are investing in them, it would be a good idea for all of us to reassess our investment portfolios and take a look at Bitcoin, Ether (ETH) and other new blockchain technologies.
The United States is clearly stating that it will adopt and regulate Bitcoin, blockchain technology, and other cryptocurrencies, which, from a geopolitical perspective, could not have been smarter: positioning itself to receive massive foreign investment and attracting the best talent on the planet. I hope that The United States becomes the leader in decentralized finance in the coming years as regulators continue to work with the crypto community to build a sustainable and secure industry..
This article does not contain investment advice or recommendations. All investing and trading involves risk, and readers should do their own research when making a decision.
The views, thoughts and opinions expressed here are solely those of the author and do not necessarily reflect or represent the views and opinions of Cointelegraph.
Raymond Hsu is the co-founder and CEO of Cabital, a cryptocurrency wealth management platform. Before co-founding Cabital in 2020, Raymond worked for traditional banking and fintech institutions such as Citibank, Standard Chartered Bank, eBay, and Airwallex.
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