US will not follow China’s authoritative Crypto Ban, says SEC Chief

The infamous, anti-crypto SEC Chairman, Gary Gensler reinstated that regardless of the US regulators’ crackdown on crypto, the commission has no plans to ban digital currency like the authoritarian Chinese state. In a House Committee on Financial Services this Tuesday, Gensler noted that SEC efforts are aimed at regulating cryptocurrencies and not banning them.

The regulation comes in lieu of facilitating investor and consumer protection, along with assuring that anti-money laundering regulations and tax laws are abided by in the country. Furthermore, he stated that financial stability issues because of crypto’s use are also a concern that the government is dealing with.

Gensler stated that the U.S. “approach is really quite different” from that of China. “It’s a matter of how we get [the cryptocurrency] field within the investor-consumer protection that we have,” Gensler added, referring to SEC’s duties.

Gensler also stated that further crypto crackdown to boost Central Bank Digital Currency (CBDC) would be Congress’ decision and not the SECs’. Additionally, Gensler self-claimed himself as “technology-neutral”, asserting that while technology holds the potential to revolutionize markets, it can also be the cause of fallout if they remain unregulated.

“No, that would be up to Congress…I am technology-neutral. I think that 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.”, said Gensler.

SEC Chief Anti-Crypto stance

If not like authoritative China, SEC Chair, Gary Gensler’s history with cryptocurrency businesses in the US has not been particularly easy going either. Last month, at the Code Conference in Beverly Hills, California he issued a stern warning to crypto exchanges and firms staying out of the regulatory purview. Gensler said that unregulated crypto markets and companies operating outside the regulatory purview “will not end well”.

“There’s trading venues and lending venues where they coalesce around these, and they have not just dozens but hundreds and sometimes thousands of tokens on them. This is not going to end well if it stays outside the regulatory space.”