The US becomes the global leader in crypto and blockchain
We have some great news from the US about the crypto industry this month, more good news is likely to come later this fall. On October 6, Gary Gensler, the head of the US Securities and Exchange Commission, confirmed during a hearing of the House Financial Services Committee that the regulator would not ban cryptocurrencies, potentially paving the way for the world’s largest economy globally. at the forefront of developing decentralized finance (DeFi) and blockchain technology.
Gensler, who taught a cryptocurrency class at MIT, also said that banning cryptocurrencies is outside the SEC’s mandate and that the only way to legally ban digital assets is through Congress. “The problem is how do we get this into the investor consumer protection area that we have, and how we also work with banking regulators and others – how can we make sure the Treasury Department has it on money laundering and tax compliance” said Gensler. He also added:
“Many of these tokens pass the test of being an investment contract, a note or a security.”
US regulators will not ban cryptocurrencies
The SEC announcement comes after Federal Reserve Chairman Jerome Powell said on Sept. 30 that the regulator had no plans to ban Bitcoin (BTC) and other cryptocurrencies while testifying in parliament. When asked by Representative Ted Budd, a longtime crypto advocate and member of the Congressional Blockchain Caucus, whether he intends to “ban or restrict the use of cryptocurrencies.” [I have] have no intention of banning them. “
– LilMoonLambo (@LilMoonLambo) September 30, 2021
Most of the media reports I’ve read are titled, “The United States Will Not Ban Cryptocurrencies.” This is true, but it also has far more important implications: The US will allow cryptocurrencies to thrive and involve the community in discussions about better ways to regulate the industry.
When the world’s largest economy announces that it will let cryptocurrencies live with its current financial industry – with proper regulation, of course – all other countries should notice and start creating new jobs.
USA allow cryptocurrencies with increasing acceptance
As we’ve seen, US regulators are integrating the crypto industry into their financial system – so that the traditional banking system can work and develop quickly alongside the new decentralized financial system. This could allow the US to be at the forefront of fintech development, blockchain technology, and even more unique pieces of decentralized finance like insurance, trade finance, and fundraising.
Related: Crypto in the crosshair: US regulators are keeping an eye on the crypto sector
From a regulatory perspective, there is still much work to be done by the crypto community and the U.S. government to understand what their concerns are and how they can work harder together to make smart decisions about how to regulate the industry, including regulating the industry Stablecoins, decentralized exchanges, crypto derivatives and profit farming, to name a few.
It is also very possible that the SEC could approve up to four Bitcoin futures contracts this fall, based on data compiled by Bloomberg Intelligence. On October 3, the analyst raised the possibility that the SEC will approve 75% of Bitcoin Exchange Traded Funds (ETFs), with ProShares and Valkyrie already leading the race and receiving their approvals on October 19 and 22.
Related: Bitcoin Futures ETF: Good, but not quite there
USA leader in blockchain technology
It is also gratifying that even US legislators are buying Bitcoin. U.S. Senator Cynthia Lummis announced that she bought the world’s largest cryptocurrency on August 16, valued at between $ 50,001 and $ 100,000.
With the US government not going to ban cryptocurrencies and US politicians investing in them, it would be a good idea for all of us to re-evaluate our portfolios and take a long look at Bitcoin, Ether (ETH) and other new blockchain technologies .
The US is sending a clear signal that it will adopt and regulate Bitcoin, blockchain technology and other cryptocurrencies, from a geopolitical standpoint it couldn’t be wiser – positioning yourself to get the right amount of overseas investment and attracting the best Talents on the planet. I anticipate the United States to become a leader in decentralized finance in the years to come as regulators continue to work with the crypto community to build a sustainable and safe industry.
Raymond Hsu is co-founder and CEO of Cabital, a crypto asset management platform. Before co-founding Cabital in 2020, Raymond worked for fintech and traditional banking institutions including Citibank, Standard Chartered Bank, eBay, and Airwallex.