SEC Will Not Ban Cryptocurrencies, Gary Gensler Says

In a Tuesday hearing, Gensler told the House Committee on Financial Services that the SEC has no plans to ban crypto.

US Securities and Exchange Commission (SEC) Chairman Gary Gensler said in a speech to Congress on Tuesday that his agency had no plans to ban cryptocurrencies.

Ban on Crypto Would Be ‘Up to Congress’

When asked by Rep. Ted Budd if the SEC, following China’s example, could ban cryptocurrencies to support the launch of a national digital currency, Gensler said:

No, that would be up to Congress.”

Not long before that , Fed Chairman Jerome Powell made a similar statement .

During the four-hour hearing, Gensler answered many questions about cryptocurrencies, stablecoins, and regulation of exchanges and decentralized finance. Mostly, he voiced his earlier statements that exchanges need to register, and stablecoins can pose systemic risks and need increased control.

Even in decentralized platforms, the so-called DeFi platforms, there is a centralized protocol. Although they do not accept assets for safekeeping like centralized exchanges do, I think we could bring the maximum degree of government policy into this sort of thing,” he added. The $125 Billion segment of stablecoins is like the casino poker chips. I really believe that if it continues to grow, and it has grown 10 times over the past year, it could result in a systemic risk to the economy.”

At the same time, Gensler emphasized that most cryptocurrencies fall under the definition of a security, but declined to answer the question of whether Bitcoin or Ethereum could be included in this category:

I won’t discuss specific tokens, but I think the securities laws are clear enough.”

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