Even though Securities and Exchange Commission Chair Gary Gensler has had several run-ins with crypto businesses, he insists that the United States will not follow China's lead in banning digital currencies.
According to Gensler, the government's priority is to ensure that the industry follows investor and consumer protection standards, anti-money laundering regulations, and tax laws. He made the remarks during a House hearing when a Republican lawmaker inquired if a China-style prohibition was being considered in the United States.
“Our approach is really quite different,” Gensler said. He added that any ban would probably have to be legislated by Congress.
China issued its sweeping ultimatum against crypto trading last month, saying all transactions were off limits and that it would move aggressively to root out token mining. The announcement followed months of escalating Chinese warnings about virtual currencies.
Gensler’s remarks mirror those of Federal Reserve Chairman Jerome Powell, who said during a Sept. 30 congressional hearing that he had “no intention” of barring cryptocurrencies.
Last month, China declared a broad ban on cryptocurrency trade, declaring that all transactions would be prohibited and that it would actively pursue token mining. Following months of growing Chinese warnings about virtual currencies, the announcement came as a surprise.
Gensler's comments echo those of Federal Reserve Chairman Jerome Powell, who stated during a congressional hearing on September 30 that he had "no intention" of prohibiting cryptocurrencies.