US Securities and Exchange Commission (SEC) Chairman Gary Gensler stated that authorities in the United States are not considering a ban comparable to the one in China. On October 5th, Gensler informed The House of Financial Services that although there are no intentions to prohibit cryptocurrency, he stressed the importance of tokens that fit the definition of securities being regulated.
According to Gensler, the emphasis of the government is on investor and consumer protection legislation, anti-money laundering regulations, and tax laws. SEC’s recent actions against crypto players have led to suspicion that a crypto ban is on the way. Gensler echoed the stance taken by Federal Reserve Chairman Jerome Powell last month. The emphasis of the hearing was on the SEC’s enforcement actions and comments against specific crypto platforms, as well as other issues. In the crypto market, the SEC’s classification of most crypto assets as securities has been roundly criticized.
Regulators must accelerate their efforts to establish a comprehensive and inclusive regulatory framework in light of the cryptocurrency market’s expansion. To their credit, the SEC has properly recognized Decentralized Finance (DeFi) as a crypto sector in need of regulation. The market participants, on the other hand, are still in the dark about the extent of compliance.