In his testimony to the Congress on Tuesday, US Securities and Exchange Commission (SEC) Chair Gary Gensler clarified that his agency does not plan to ban cryptocurrencies in the country. Talks about possible curbs on digital tokens in the US have been doing the rounds of social media for some time but Gensler's clarification suggests that the country is not planning to follow China in banning non-fiat currencies after all.
Gensler's comment comes days after Federal Reserve Chairman Jerome Powell told the House Financial Services Committee that the Fed does not intend to ban cryptocurrencies in the US. That was a shot in the arm for crypto enthusiasts who had been worried about a possible crackdown against digital assets in the country following China's comprehensive ban on cryptocurrencies.
In his testimony to the House Committee on Financial Services, he also reiterated what he had earlier told the Senate Banking, Housing, and Urban Affairs Committee last month. According to him, even though the SEC is not planning to ban cryptocurrencies, it is looking to regulate the industry in the near future. In an answer to Rep. Ted Budd's (R-NC), question of whether the agency plans to impose curbs on unregulated digital assets and promote an official Central Bank Digital Currency (CBDC) instead, he said it would be up to Congress to pass any legislation to that effect.
Gensler Wants To Regulate Crypto Exchanges
On his plans to regulate the crypto industry, Gensler said: "This technology has been and can continue to be a catalyst for change, but technologies don't last long if they stay outside of the regulatory framework." According to him, crypto exchanges could be made to register with the SEC in the future to ensure a healthy industry and reduce potential risks for investors. Alongside regular crypto exchanges, decentralized exchanges, or DEXs, would also be subject to regulations, he said.
Crypto enthusiasts in the country have heaved a collective sight of relief following Gensler's testimony, with the price of bitcoin jumping to $53,902 on Wednesday morning, a significant increase from $49,178 on Monday. Overall, both traders and crypto exchange operators seem to have been placated with Powell's and Gensler's relatively neutral stance over cryptocurrencies, but it remains to be seen what 'crypto regulation' means for the future.
Crypto aficionados in the US and around the world will be happy that the world's richest country doesn't seem to be heading towards a blanket ban on digital currencies, unlike in China. According to reports, the crypto ban has had far-reaching implications on the Chinese economy, with many of the country's crypto miners fleeing the nation to save their digital assets. The price of bitcoin also slumped by more than $2,000 following the ban, although some, like Edward Snowden, believe that the Chinese ban has only made Bitcoin stronger.
Source: CoinDesk