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 primarily a peer-to-peer expertise.” The commissioner is hopeful that with the brand new chairman who has deep information 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 Troublesome’ to Ban P2P Expertise
Hester Peirce, a commissioner on the U.S. Securities and Trade Fee (SEC) who can be recognized within the crypto neighborhood as “crypto mother,” was requested whether or not there’s a chance that the Biden administration might ban bitcoin in an interview with Fox Enterprise’ Charles Gasparino on Thursday.
With new cryptocurrency regulations within the works, traders are involved whether or not the federal government will ban cryptocurrencies, together with bitcoin. Some individuals 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 Large Brief’s Michael Burry, and Ron Paul.
A bitcoin proponent, Peirce has been advocating for the SEC to approve bitcoin ETFs. Concerning the potential for banning bitcoin within the U.S., the commissioner opined:
I feel it’s very troublesome to ban one thing that’s primarily a peer-to-peer expertise. I feel the objective, as with all expertise, is to stop individuals 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 could be “foolish” to attempt to ban bitcoin, likening it to shutting down the web.
The U.S. authorities is worried about cryptocurrencies being utilized in illicit actions. Treasury Secretary Janet Yellen has mentioned a number of occasions that cryptocurrencies are primarily used for illicit financing. She additionally mentioned beforehand that the Treasury will work with different regulators to provide you with appropriate regulations for the crypto house.
Fox Enterprise lately reported that crypto regulation could begin from the Treasury and the SEC is ready for path on broad regulatory insurance policies on cryptocurrencies from the Treasury.
The SEC additionally has a brand new chairman; Gary Gensler was confirmed to steer the fee final week. He has deep information of bitcoin and cryptocurrencies, having taught lessons on the topic on the Massachusetts Institute of Expertise (MIT). Gensler can be a former chairman of the Commodity Futures Buying and selling Fee (CFTC). He’s expected to impose a good quantity of regulation on cryptocurrencies. Final week the U.S. Home of Representatives passed a invoice mandating that the SEC and the CFTC set up a working group centered on digital property.
Concerning the potential for the SEC approving a bitcoin ETF this 12 months, Peirce mentioned, “With the brand new chairman, we can take a contemporary take a look at among the reasoning that we used to disclaim bitcoin exchange-traded merchandise up to now.” She added: “Frankly, Canada is forward of us now. Not solely they’ve bitcoin exchange-traded products, however additionally they have exchange-traded merchandise based mostly on ether.”
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