The United States will become the world leader in crypto and blockchain

We have great news from the United States on the cryptocurrency industry this month with potentially more good news to come later this fa...

We have great news from the United States on the cryptocurrency industry this month with potentially more good news to come later this fall. October 6, Gary Gensler, head of the United States Securities and Exchange Commission (SEC), confirmed during a hearing of the House Committee on Financial Services that the regulator will not ban cryptocurrency, potentially paving the way for the world’s largest economy to become the world leader in the development of decentralized finance (DeFi) and blockchain technologies.

Gensler, who taught a cryptocurrency course at MIT, also said the cryptocurrency ban was outside the SEC’s mandate and that the only way to legally ban digital assets would be to pass by Congress. “It’s about how to fit this area into the consumer investor protection that we have and also working with bank regulators and others – how to make sure the Treasury Department has it as part of the anti-money laundering and tax compliance, ”Gensler said. He also added:

“Many of these tokens pass the test of being an investment contract, rating, or security.”

US regulators don’t ban cryptocurrencies

The SEC announcement comes after U.S. Federal Reserve Chairman Jerome Powell said on September 30 that the regulator does not intend to prohibit Bitcoin (BTC) and other cryptocurrencies during testimony in Congress. Asked by Rep. Ted Budd, a longtime advocate of the cryptocurrency industry and member of the Congressional Blockchain Caucus, if he intended to “ban or limit the use of cryptocurrencies,” Powell responded with a resounding “No. [I have] no intention to ban them.

Most of the media reports I’ve read are headlined “US Does Not Ban Cryptocurrencies.” That’s true, but it also means something much bigger: The United States will allow cryptocurrency to thrive and invite the community to get involved in the process of discussing better ways to regulate it. 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 take heed and start considering opening their doors. doors and regulate the industry in a fair way that stimulates innovation and helps create new jobs.

US Allows Crypto As Adoption Grows

As we have seen, US regulators are integrating the cryptocurrency industry into their financial system, allowing the traditional banking system to operate alongside the rapidly growing new decentralized financial system. This could allow the United States to become a leader in the development of fintech, blockchain technologies, and even more unconventional aspects of decentralized finance such as insurance, trade finance, and fundraising. funds.

Related: Crypto in the crosshairs: US regulators eye cryptocurrency industry

From a regulatory perspective, there is still a lot of work to be done by the cryptocurrency community and the US government to determine where their interests align and how they can work harder, thus making a smart decision together on how to regulate the industry, including the regulation of stablecoins, decentralized exchanges, cryptocurrency derivatives, and yield farming, to name a few.

It’s also very possible that the SEC will approve up to four Bitcoin futures this fall, based on Bloomberg Intelligence’s tally. October 3, the analyst put the odds SEC would approve a Bitcoin exchange-traded fund (ETF) at 75%, with ProShares and Valkyrie already leading the race, getting their approvals on October 19 and 22, respectively.

Related: Bitcoin futures ETF: good, but not quite there

The United States at the forefront of blockchain technologies

It’s also good to note that even US lawmakers are buying Bitcoin. US Senator Cynthia Lummis revealed that she had picked up the world’s largest cryptocurrency on August 16, valued between $ 50,001 and $ 100,000.

Since the US government is not banning cryptocurrencies and US politicians are investing in them, it would be a good idea for all of us to re-evaluate 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 adopt and regulate Bitcoin, blockchain technology and other cryptocurrencies, which geopolitically could not have been smarter – positioning itself to receive investment massive foreigners and attract the best talent on the planet. I expect to see the United States become the leader in decentralized finance over the next several years as regulators continue to work with the cryptocurrency community to build a sustainable and secure industry.

This article does not contain any investment advice or recommendations. Every investment and trading move involves risk, and readers should do their own research before making a decision.

The views, thoughts and opinions expressed here are those of the author alone 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 traditional financial and banking institutions including Citibank, Standard Chartered Bank, eBay and Airwallex.