Gary Gensler: The SEC Has No Plans to Ban Cryptocurrencies

Reading Time: < 1 minute

The US Securities and Exchange Commission (SEC) has no plans to ban cryptocurrencies, as stated the head of the regulator Gary Gensler.

He commented on the question of Rep. Ted Budd about the possibility of following China’s path with regard to digital assets. He said:

“Our approach is completely different. The question is how do we integrate this area [of cryptocurrencies] into existing investor and consumer protection frameworks. How should we interact with other regulators to facilitate the work of the Ministry of Finance in combating money laundering and tax administration.”

During his speech to Congress, Gensler recalled that he believes that most cryptocurrencies correspond to the status of investment contracts, and stablecoins pose a threat to financial stability. He said:

“$125 billion worth of stablecoins are like casino poker chips. If the market continues to grow tenfold, as it did over the past year, the segment will pose a systemic risk to the economy.”

At the same time, the head of the SEC avoided answering a direct question about if Bitcoin and Ethereum could be considered securities:

!I will not discuss specific tokens. The securities laws are very clear. If you raise funds, if investors expect profits from the efforts of others, then that is subject to regulation.”