The United States will become the global crypto and blockchain leader

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We have great news coming out of the U.S. about the crypto currency industry this month with maybe more good news coming later this fall. On October 6, Gary Gensler, head of the U.S. Securities and Exchange Commission (SEC), confirmed during a hearing of the House Financial Services Committee that the regulator will not ban cryptocurrency, possibly blazing the way for the most let the world’s great economy become the global one. a leader in the development of decentralized finance (DeFi) and blockchain technologies.

Gensler, who taught a class on cryptocurrency at MIT, also said a ban on cryptocurrency is not under the SEC’s mandate and the only way to legally ban digital assets would be through Congress. “It’s a question of how we get this field within the investor-consumer protection we have and also working with bank regulators and others – how we make sure the Treasury has it within Anti-Money Laundering, tax compliance,” he said. Gensler. He also added:

“Many of these tokens fulfill the test of being an investment contract, or a note, or a security.”

U.S. regulators will not ban cryptocurrencies

The SEC’s announcement comes after U.S. Federal Reserve Chairman Jerome Powell said Sept. 30 that the regulator does not plan to ban Bitcoin (BTC) and other cryptocurrencies during testimony in Congress. Asked by Rep. Ted Budd, a longtime activist for the cryptocurrency sector and a member of the Congressional Blockchain Caucus, whether he intended to “ban or restrict the use of cryptocurrencies,” Powell said. answered with a resounding “No. [I have] no intention of banning them. ”

Most of the media reports I’ve read are titled “The United States will not ban cryptocurrencies.” This is true, but this also means something much more significant: the United States will allow cryptocurrency to grow and accept the community for being involved in the process of discussing better ways to regulate the industry.

When the world’s largest economy announces that it will allow cryptocurrency to exist with its current financial industry – of course, with proper regulation – all other nations should realize and start considering opening their doors and regulating the industry in a fair way that spurs. innovation and helps create new jobs.

The United States allows crypto as adoption increases

As we have seen, U.S. regulators are incorporating the cryptocurrency industry into its financial system – allowing the traditional banking system to work in conjunction with the new and rapidly growing decentralized financial system. This could enable the United States to become a leader in fintech development, blockchain technologies and even in more unconventional parts of decentralized finance such as insurance, commercial finance and fundraising.

Related: Cryptography in the crossroads: US regulators are looking at the crypto sector

From a regulatory standpoint, there is a lot of work that still needs to be done by the cryptocurrency community and the U.S. government to pinpoint where their interest ranks and how they can work harder, so making a smart decision together on how to regulate the industry, including of the regulation of stable currencies, decentralized exchanges, cryptocurrencies and yielding farming, just to name a few.

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It’s also very likely that the SEC could approve as many as four Bitcoin futures this fall, based on Bloomberg Intelligence’s calculation. On October 3, the analyst set the chances that the SEC would approve a Bitcoin exchange-traded fund (ETF) at 75%, with ProShares and Valkyrie already leading the race, receiving their approvals on October 19 and October 22. an of October, respectively. .

Related: Bitcoin futures ETFs: Okay, but not quite there

The United States intends to lead in blockchain technologies

It’s also nice to note that even U.S. lawmakers are buying Bitcoin. U.S. Senator Cynthia Lummis revealed she acquired the world’s largest cryptocurrency on Aug. 16, valued at between $ 50,001 to $ 100,000.

Since the U.S. government will not ban cryptocurrencies and U.S. politicians invest in them, it would be a good idea for us all to reevaluate our investment portfolios and take a long look at Bitcoin, Ether (ETH) and other new blockchain technologies.

The United States is clearly signaling that it will embrace and regulate Bitcoin, blockchain technology and other cryptocurrencies that, from a geopolitical perspective, could not be smarter – positioning itself to receive massive foreign investment and attract the best talent on the planet. I look forward to seeing the U.S. become the leader in decentralized finance over the next few years as regulators continue to work with the cryptocurrency community to build a sustainable and secure industry.

This article does not contain investment advice or recommendations. Every investment and business move involves risk, and readers need to do their own research when making a decision.

The opinions, thoughts and opinions expressed herein are solely those of the author and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Raymond Hsu is the co-founder and CEO of Cabital, a cryptocurrency wealth management platform. Prior to co-founding Cabital in 2020, Raymond worked for fintech and traditional banking institutions, including Citibank, Standard Chartered Bank, eBay and Airwallex.