SEC Not Looking to Ban Crypto, But Congress Might
U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler said to Congress this week that his SEC has no plans to ‘ban’ crypto assets.
In a direct response to North Carolina Congressman Ted Budd whether the regulator considers banning crypto to favor a central banking digital currency (CBDC), Gensler dismissed the suggestion and said:
“No, that would be up to Congress.”
Gensler’s statement came during a four-hour long congressional hearing on cryptocurrencies and DeFi.
Gensler’s echo Federal Reserve Chair Jerome Powell’s sentiments who a week earlier told the House Financial Services Committee that the Fed currently has “no plans to ban” crypto.
Nonetheless, Gensler did stress that crypto exchanges should register with the SEC, and most crypto tokens can be considered securities. In addition, he said that DeFi businesses will be subject to public policy.
Representative Patrick McHenry also made use of the opportunity to criticize the SEC’s lack of clarity when it comes to digital assets. McHenry stated that under Gensler’s leadership the regulator has failed to act in accordance with the agency’s “long-held practice of noticing comment on rulemaking and procedures.”
“Some of those comments you have made have raised questions in the marketplace and made things less than clear. You’ve made seemingly off the cuff remarks that move markets, you’ve disregarded rule-making by putting a statement out without due process, and you’ve essentially run roughshod over American investors.”
In his defence, Gensler’s responded that the SEC adheres to the administrative procedures act.
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Author: Peter Siu