The United States is rapidly embracing decentralized finance (DeFi), the cryptocurrency industry, and the innovative blockchain technology sector. There is a lot of great news that is coming out of the US on the crypto sector with possibly more great news coming later this fall.
The head of the U. S. Securities and Exchange Commission (SEC), Gary Gensler, said on October 6 during a House Committee on Financial Services hearing that the regulator will not ban crypto. That statement possibly blazed the path for the world’s biggest economy to become a global leader in the development of blockchain technologies and decentralized finance.
Gensler previously taught a class on crypto at MIT. He confirmed that prohibiting crypto does not fall under the SEC’s mandate and the only way to legally and officially ban the digital assets would be through Congress. Gensler explained:
“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. Many of these tokens do meet the test of being an investment contract, or a note, or a security.”
US Regulators Will Not Ban Cryptos
The SEC’s official announcement comes after the United States Federal Reserve Chair Jerome Powell stated on September 30 that the regulator does not have any plans to ban Bitcoin (BTC) and other cryptos during his testimony in Congress.
When he was asked by one longtime advocate for the crypto industry and a member of the Congressional Blockchain Caucus, Rep. Ted Budd, whether he wanted to “ban or limit the use of cryptocurrencies,” Powell responded with n emphatic “No. [I have] no intention to ban them.”
— LilMoonLambo (@LilMoonLambo) September 30, 2021
A majority of the media reports are headlined: “The U.S. will not ban cryptocurrencies.” Although that might be the case, it also means something more significant:
“The U.S. will allow cryptocurrency to grow and will embrace the community to be involved in the process of discussing better ways for regulating the industry.”
When the biggest economy in the world says that it will allow crypto to co-exist with its current financial sector, but with proper regulation, all other nations need to take notice. Experts say that other countries need to start considering opening their doors and regulating the sector in a fair manner that supports innovation and helps to create new jobs.
The United States Authorizes Cryptocurrency As Adoption Grows
As has been the case in recent months, the US regulators are continuously incorporating the crypto sector into the country’s financial system. This move has enabled the traditional banking network to work alongside the contemporary and quick-growing decentralized financial system.
That might enable the United States to become a frontrunner in blockchain technologies, fintech development, and even grow into the more unconventional parts of decentralized finance like trade finance, insurance, and fundraising.
From a regulatory perspective, there is a lot of work that has to be done by the crypto sector and the United States government to pinpoint where their interests align. The two parties also need to work together to make smart and informed decisions on how best to regulate the budding sector. Regulations need to be created for decentralized exchanges (DEXs), stablecoins, yield farming, and crypto derivatives.
It is also highly likely that the SEC might approve up to four Bitcoin futures this fall, according to Bloomberg Intelligence’s count. The analyst put the possibility that the SEC would approve BTC exchange-traded fund (ETF) at 75%, on October 3. Valkyrie and ProShares are already leading the race and their approvals came out on October 22 and October 19 respectively.
The US To Lead In Blockchain Technologies
It is also worth noting that even the US legislators are acquiring Bitcoin. U.S. Senator Cynthia Lummis confirmed that she bought the world’s leading crypto on August 16, worth $50,001 to $100,000.
Since the United States government does not plan to ban cryptocurrencies and the legislators are even investing in them, it might be a great idea for everyone to reevaluate their investment portfolios and take a lengthy look at Ether, Bitcoin, and other new blockchain technologies.
In that context, the United States is now indicating that it will embrace and regulate blockchain technology, bitcoin, and other cryptos. From a geopolitical perspective, that is a smart move in positioning itself to get loads of foreign investment. This will attract the best talent on the planet to move to the US.
With these investments, the US will become the leader in decentralized finance in the coming years as regulators continue working with the crypto sector to build a sustainable and secure sector.