The head of the Securities & Exchange Commission of the United States confirmed that they can’t ban crypto because they have no authority to do the same.
Recently the chairman of the Federal Reserve clearly said that they don’t have any kind of intention to ban crypto, while he asserted about the regulation on this industry, in special stablecoins. That statement of Powell spreaded huge positive vibes in the crypto community. But another statement by the SEC chair coming, which is following almost the similar kind of thinking.
Related: Fed Res Chair says no intention to ban crypto
On 5 October, during the hearing in the House Committee on Financial Services, Gray Gensler, chairman of SEC, was questioned on the prohibition of crypto. Then at that question, Gary clearly stated that they cannot because of authority issues. But in the next line they claimed that Congress can do it, because of authority.
“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,”
So Gary explained that the role of the Securities and Exchange Commission is only to protect the investors and prohibit the illicit activities. And they can’t bring any rule to prohibit the use of crypto use.
Patrick McHenry, representative of the hearing, asked Gary Gensler about the leadership of the SEC in the industry and claimed that SEC authorities tried to do something different than what they have authority, then Gary replied ” SEC follows the administrative procedures act”.
Further, Patrick raised a question by taking the reference of Gary Gensler views, when he was teaching in MIT and criticized past ruling of the SEC about distinguishing the crypto assets. Then Gary replied that “I’m not going to get into any one token, but I think the securities laws are quite clear”
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