SEC Commissioner Hester Peirce believes that the U.S. authorities can not ban bitcoin, stating that “it’s very troublesome to ban one thing that’s basically a peer-to-peer know-how.” The commissioner is hopeful that with the brand new chairman who has deep data of bitcoin and cryptocurrencies, the SEC can take a contemporary take a look at among the causes used to reject bitcoin exchange-traded funds (ETFs).
SEC Commissioner Says ‘Very Tough’ to Ban P2P Expertise
Hester Peirce, a commissioner on the U.S. Securities and Change Fee (SEC) who can also be identified within the crypto neighborhood as “crypto mother,” was requested whether or not there’s a risk that the Biden administration may ban bitcoin in an interview with Fox Enterprise’ Charles Gasparino on Thursday.
With new cryptocurrency rules within the works, traders are involved whether or not the federal government will ban cryptocurrencies, together with bitcoin. Some folks have warned that governments can outlaw bitcoin if it turns into a danger to their monetary methods. Amongst them are Bridgewater Associates founder Ray Dalio, The Huge Quick’s Michael Burry, and Ron Paul.
A bitcoin proponent, Peirce has been advocating for the SEC to approve bitcoin ETFs. Concerning the potential of banning bitcoin within the U.S., the commissioner opined:
I believe it’s very troublesome to ban one thing that’s basically a peer-to-peer know-how. I believe the aim, as with all know-how, is to stop folks from utilizing it for illicit functions and solely enable them to make use of it for authorized functions. That’s what I anticipate to occur.
Commissioner Peirce beforehand mentioned that the federal government can be “silly” to attempt to ban bitcoin, likening it to shutting down the web.
The U.S. authorities is anxious about cryptocurrencies being utilized in illicit actions. Treasury Secretary Janet Yellen has mentioned a number of instances that cryptocurrencies are primarily used for illicit financing. She additionally mentioned beforehand that the Treasury will work with different regulators to provide you with applicable rules for the crypto area.
Fox Enterprise not too long ago reported that crypto regulation might begin from the Treasury and the SEC is ready for route on broad regulatory insurance policies on cryptocurrencies from the Treasury.
The SEC additionally has a brand new chairman; Gary Gensler was confirmed to guide the fee final week. He has deep data of bitcoin and cryptocurrencies, having taught courses on the topic on the Massachusetts Institute of Expertise (MIT). Gensler can also be a former chairman of the Commodity Futures Buying and selling Fee (CFTC). He’s anticipated to impose a good quantity of regulation on cryptocurrencies. Final week the U.S. Home of Representatives handed a invoice mandating that the SEC and the CFTC set up a working group centered on digital belongings.
Concerning the potential of the SEC approving a bitcoin ETF this 12 months, Peirce mentioned, “With the brand new chairman, we will take a contemporary take a look at among the reasoning that we used to disclaim bitcoin exchange-traded merchandise prior to now.” She added: “Frankly, Canada is forward of us now. Not solely they’ve bitcoin exchange-traded merchandise, however additionally they have exchange-traded merchandise primarily based on ether.”
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