We now have some nice information popping out of the US on the cryptocurrency trade this month with doubtlessly extra excellent news coming later this fall. On Oct. 6, Gary Gensler, head of the U. S. Securities and Trade Fee (SEC), confirmed throughout a Home Committee on Monetary Companies listening to that the regulator is not going to ban cryptocurrency, doubtlessly blazing the trail for the world’s largest financial system to develop into the worldwide chief within the growth of decentralized finance (DeFi) and blockchain applied sciences.
Gensler, who taught a category on cryptocurrency at MIT, additionally mentioned that prohibiting cryptocurrency doesn’t fall below the SEC’s mandate and the one method to legally ban digital property can be by way of Congress. “It’s a matter of how we get this subject inside the investor shopper safety that we now have and likewise working with financial institution regulators and others — how will we make sure that the Treasury Division has it inside Anti-Cash Laundering, tax compliance,” Gensler mentioned. He additionally added:
“Many of those tokens do meet the take a look at of being an funding contract, or a be aware, or a safety.”
U.S. regulators is not going to ban cryptocurrencies
The SEC’s announcement comes after U.S. Federal Reserve Chair Jerome Powell mentioned on Sept. 30 that the regulator has no plans to ban Bitcoin (BTC) and different cryptocurrencies throughout testimony in Congress. When requested by Rep. Ted Budd, a longtime advocate for the cryptocurrency sector and a member of the Congressional Blockchain Caucus, whether or not he supposed to “ban or restrict using cryptocurrencies,” Powell responded with a convincing “No. [I have] no intention to ban them.”
Fed Chair Powell says he has no intention to ban #Bitcoin and cryptocurrencies pic.twitter.com/i2zfRPk1je
— LilMoonLambo (@LilMoonLambo) September 30, 2021
A lot of the media stories I’ve been studying are headlined with “The U.S. is not going to ban cryptocurrencies.” That is true, however this additionally means one thing way more important: The U.S. will permit cryptocurrency to develop and can embrace the group to be concerned within the means of discussing higher methods for regulating the trade.
When the biggest financial system on this planet pronounces that it’s going to permit cryptocurrency to exist with its present monetary trade — after all, with correct regulation — all different nations ought to take discover and start contemplating opening their doorways and regulating the trade in a good means that spurs innovation and helps to create new jobs.
The U.S. permits crypto as adoption will increase
As we now have been seeing, U.S. regulators are incorporating the cryptocurrency trade into its monetary system — permitting the standard banking system to work alongside the brand new and fast-growing decentralized monetary system. This might allow the U.S. to develop into a frontrunner in fintech growth, blockchain applied sciences and even into extra unconventional components of decentralized finance similar to insurance coverage, commerce finance and fundraising.
Associated: Crypto within the crosshairs: US regulators eye the cryptocurrency sector
From a regulatory standpoint, there may be loads of work that also must be achieved by the cryptocurrency group and the U.S. authorities to pinpoint the place their curiosity aligns and the way they’ll work more durable, subsequently making a good move collectively on learn how to regulate the trade, together with the regulation of steady cash, decentralized exchanges, cryptocurrency derivatives and yield farming, simply to call a couple of.
It is usually very attainable that the SEC might approve as many as 4 Bitcoin futures this fall, based mostly on Bloomberg Intelligence’s rely. On Oct. 3, the analyst put the probabilities the SEC would approve a Bitcoin exchange-traded fund (ETF) at 75%, with ProShares and Valkyrie already main the race, getting their approvals approaching Oct. 19 and Oct. 22, respectively.
Associated: Bitcoin futures ETFs: Good, however not fairly there
The U.S. set to guide in blockchain applied sciences
It is also good to notice that even American lawmakers are shopping for Bitcoin. U.S. Senator Cynthia Lummis disclosed that she scooped up the world’s largest cryptocurrency on Aug. 16, price between $50,001 to $100,000.
For the reason that U.S. authorities gained’t ban cryptocurrencies and American politicians are investing in them, it might be a good suggestion for all of us to reevaluate our funding portfolios and take an extended take a look at Bitcoin, Ether (ETH) and different new blockchain applied sciences.
The U.S. is clearly signaling that it’s going to embrace and regulate Bitcoin, blockchain expertise and different cryptocurrencies, which from a geopolitical perspective, couldn’t have been extra sensible — positioning itself to obtain huge international funding and entice the most effective expertise on the planet. I anticipate to see the U.S. develop into the chief in decentralized finance over the approaching years as regulators proceed to work with the cryptocurrency group to construct a sustainable and safe trade.
This text doesn’t include funding recommendation or suggestions. Each funding and buying and selling transfer includes threat, and readers ought to conduct their very own analysis when making a call.
The views, ideas and opinions expressed listed below are the writer’s alone and don’t essentially replicate or symbolize the views and opinions of Cointelegraph.
Raymond Hsu is the co-founder and CEO at Cabital, a cryptocurrency wealth administration platform. Previous to co-founding Cabital in 2020, Raymond labored for fintech and conventional banking establishments, together with Citibank, Commonplace Chartered Financial institution, eBay and Airwallex.