Gensler Confirms SEC Can’t and Won’t Ban Cryptocurrency as US Approach is Different from China

SEC Chairman Gary Gensler has confirmed, in response to a question by Representative Ted Budd, that banning cryptocurrencies doesn’t come under the duties of the U.S. Securities and Exchange Commission (SEC)[...]

SEC Chairman Gary Gensler has confirmed, in response to a question by Representative Ted Budd, that banning cryptocurrencies doesn’t come under the duties of the U.S. Securities and Exchange Commission (SEC). During a video conference with members of Congress on October 5, 2021 (House Committee on Financial Services hearing), in response to Ted Budds’ query regarding the possibility of a China-like cryptocurrency ban in the US by the SEC, Gensler said that the US approach to dealing with these issues is significantly different from that of China. 


While highlighting duties of the SEC, Gensler went on to say:


“It's a matter of how we get this field within the investor consumer protection that we have and also working with bank regulators and others — how do we ensure that the Treasury department has it within anti-money laundering, tax compliance”


He stressed the need to bring bitcoin BTC and other cryptocurrencies under the purview of the SEC, especially under the investor protection remit. Gensler went on to say:


“Many of these tokens do meet the test of being an investment contract, or a note, or a security.”


When he was further questioned about cryptos, the SEC chair said that it is up to the US Congress to decide whether they want to restrict cryptocurrencies for backing government-backed CBDC (Central Bank Digital Currency). 


Experts believe that Gensler’s statement in response to the question of the possibility of banning cryptocurrencies in the US is extremely relevant, especially after the U.S Federal Reserve Chairman Jerome Powell said on September 30, 2021, that they have no intention to ban cryptos and other digital assets.