SEC: U.S. Won't Follow China in Banning Cryptocurrencies

U.S. House, Securities and Exchange Commission (SEC) Chair Gary Gensler told Congress on Tuesday that his agency would not move to implement a ban on cryptocurrencies.

The topic was addressed after North Carolina Representative Ted Budd, a supporter of cryptocurrencies, asked whether the SEC would move forward in instituting a ban on the digital currencies like China instituted last month. To this, Gensler said:

"No, that would be up to Congress." He added, "I am technology-neutral. I think that this technology has been and can continue to be a catalyst for change, but technologies don't last long if they stay outside of the regulatory framework."

While Gensler has expressed concern over the crypto market, worrying that "people will be hurt," his recent comments fall in line with those of Federal Reserve Chairman Jerome Powell, who told members of Congress during a September 30 hearing that he had "no intention" of barring cryptos.

"In China, regulators have taken the opposite approach."

On September 24, authorities said cryptos were banned and they would go after miners and digital assets. Soon after, the offshore cryptocurrency exchange Huobi stopped allowing those with a phone number attached to mainland China to register for a new account, Bloomberg reported.

Huobi later released a statement saying it would "gradually retire existing mainland China user accounts."

Later, a collation of China's Supreme Court, the People's Bank of China, police, and internet and securities watchdogs, signaled that enforcement of the ban would come from a number of different avenues.

The loophole allowing Chinese citizens to invest through offshore exchanges was also closed. Source!