Gary Gensler: SEC has no plans to ban cryptocurrencies

Gary Gensler: SEC has no plans to ban cryptocurrencies

The US Securities and Exchange Commission (SEC) has no plans to ban cryptocurrencies, this is the prerogative of Congress. Such a statement was made by the head of the regulator, Gary Gensler.

So he commented on a question from House of Representatives member Ted Budd about the possibility of following China's path with regard to digital assets.

"Our approach is completely different. The question is how do we build this [cryptocurrency] area into the existing investor and consumer protection framework. How should we engage with other regulators to make it easier for the Ministry of Finance to deal with money laundering and tax administration," he explained.

During his address to Congress, Gensler reminded that most cryptocurrencies, in his view, qualify for the status of investment contracts and stablecoins pose a threat to financial stability.

"Stablecoins worth $125bn are like poker chips in a casino. If the market continues to grow tenfold as it has over the past year, the segment will become a systemic risk to the economy," he stressed.

At the same time, the head of the SEC evaded answering a direct question about the treatment of bitcoin and Ethereum.

"I will not discuss specific tokens. The securities laws are very clear. If you raise funds, if investors expect to profit from the efforts of others, that falls under regulation," he explained.

Gensler also touched on the topic of regulation of exchanges and DeFi.

"Even DeFi platforms have a centralised protocol. I believe we can get the maximum degree of government policy here as well," he added.

Recall that in September, Fed chief Jerome Powell said there were no plans to ban cryptocurrencies. At the same time, the head of the agency allowed for the need to include some of them in the legal framework.

Earlier, Gensler confirmed the conditions under which the SEC will approve a bitcoin-ETF.

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