The US not to follow suit with China

  • SEC Chairman has no intention to ban cryptos
  • industry follows investor and consumer protection rules, anti-money laundering regulations, and tax laws
  • any prohibition would almost certainly have to be enacted by Congress

Even though Securities and Exchange Commission (SEC) Chairman Gary Gensler has had several run-ins with crypto businesses, he insists that the US will not follow China’s lead in banning digital currencies.

The government’s priority, according to Gensler, is to ensure that the industry follows investor and consumer protection rules, anti-money laundering regulations, and tax laws. During a House hearing, he made the remarks when a Republican lawmaker questioned if a China-style ban was being considered in the United States.

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Our methodology is truly unique, Gensler explained. He went on to say that any prohibition would almost certainly have to be enacted by Congress.

Last month, China declared a blanket ban on the crypto trade, stating that all transactions would be prohibited and that it would aggressively pursue token mining. Following months of mounting Chinese warnings against the virtual currency, the statement was made.

Echoing Fed Chair’s opinion

Gensler’s comments echo those of Federal Reserve Chairman Jerome Powell, who indicated during a congressional hearing on September 30 that he had no intention of prohibiting the use of cryptocurrencies. 

China’s mayhem on crypto

Where every country embraces crypto and sees a better future for its economy, China is one such nation that has put an ax on crypto trading on September 24. The country declared crypto as illegal and is punishable in the eyes of the law whosoever trades in cryptocurrency. The traders had to face punishment if found guilty. 

Authorities declared cryptos illegal and warned that miners and digital assets would be targeted. The offshore bitcoin exchange Huobi soon stopped allowing mainland Chinese phone numbers to register for new accounts. Huobi afterward issued a statement stating that existing mainland China user accounts will be gradually retired.

Later, the Supreme Court of China, the People’s Bank of China, police, and internet and securities watchdogs suggested that the ban would be enforced through a variety of channels. A loophole that allowed Chinese people to invest in foreign markets was also closed.

According to the Cambridge Bitcoin Electricity Consumption Index, this caused many of China’s crypto miners to abandon the country, which formerly had a 46 percent share of the worldwide hash rate, a measure of the power needed in mining and processing.

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Andrew Smithhttp://thecoinrepublic.com
Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing

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