Gary Gensler, the chairman of the US Securities and Exchange Commission (SEC), says his agency has no plans to ban cryptocurrencies such as bitcoin (BTC) and ethereum (ETH). He himself admits that the SEC cannot do this at all.
Gensler answered questions about crypto regulation during a hearing with the House Committee on Financial Services on Oct. 5. When asked whether the United States will follow China’s recent ban, Gensler says, “That’s up to Congress.”
However, Gensler reports that he is still convinced that many cryptos meet the criteria of a security, i.e. a security or investment contract. That would put many tokens under SEC scrutiny, Gensler said, especially with a view to consumer protection for investors.
Gensler also raises concerns about so-called stablecoins, crypto whose value is linked to another asset or currency, usually the US dollar. He calls them a threat to financial stability and again poker chips.
Gensler also believes that cryptocurrency exchanges should register with the SEC, and that may include decentralized exchanges (DEX), associated with the decentralized finance (DeFi) market. According to Gensler, these types of DeFi platforms still have a centralized protocol.
Finally, Gensler also received a lot of criticism. Patrick McHenry of the United States House of Representatives lashes out at Gensler’s statements:
“Some of those comments you have made have raised questions in the market and have not made things clear. You’ve made seemingly superficial comments that move markets, you’ve disregarded regulation by making a statement without due process, and you’ve essentially reprimanded US investors.”