SEC not intend to ban cryptocurrencies
After recent harsh statements made by Gary Gensler, Chairman of the SEC, market participants were worried that the US could follow China’s warpath on the crypto market. Gary Gensler rushed to dispel fears saying that the US would not take such tough measures and prohibit digital assets.
Notably, such fears were quite reasonable. Gary Gensler is widely known as a vocal opponent of virtual assets. However, as US lawmakers always tend to repeat, the US is a country of freedom and opportunities, not prohibitions and limits. To tackle the issue, they just need to adopt legislation on crypto regulation in the country. Many lawmakers speak in favor of the introduction of stricter rules for cryptocurrencies. Mr. Gensler pinpoints that the prior goal of the regulator is to ensure compliance with the rules for protecting investors and regular consumers, anti-money laundering regulations, and tax legislation. When being asked about the possible ban on the use of digital coins in the US, he replied that the SEC's approach to crypto regulation was completely different from other countries. Besides, before prohibiting virtual assets, the SEC must seek approval from Congress.
Therefore, the regulator's attitude towards crypto does not contradict the statement of Fed Chairman Jerome Powell. At congressional hearings, Powell disclosed that he had no intention of banning cryptocurrency in the US. However, local authorities intend to tighten control over illegal crypto transactions. US President Joe Biden has already found the so-called allies in the fight against crypto criminals.
Fears over the ban on digital currencies in the United States intensified amid China’s crackdown on the crypto market in September. Beijing declared any transactions with cryptocurrency illegal.