SEC Commissioner Hester Peirce believes that the U.S. authorities can’t ban bitcoin, stating that “it’s very tough 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 a number of the causes used to reject bitcoin exchange-traded funds (ETFs).
SEC Commissioner Says ‘Very Tough’ to Ban P2P Know-how
Hester Peirce, a commissioner on the U.S. Securities and Trade Fee (SEC) who can also be identified within the crypto group 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, buyers 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 techniques. 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. Relating to the potential for banning bitcoin within the U.S., the commissioner opined:
I believe it’s very tough to ban one thing that’s primarily a peer-to-peer expertise. I believe 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 anxious 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 give you appropriate regulations for the crypto area.
Fox Enterprise not too long ago reported that crypto regulation could begin from the Treasury and the SEC is ready for course 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 courses on the topic on the Massachusetts Institute of Know-how (MIT). Gensler can also 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 targeted on digital property.
Relating to the potential for the SEC approving a bitcoin ETF this yr, Peirce mentioned, “With the brand new chairman, we will take a contemporary take a look at a number of 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 in addition they have exchange-traded merchandise based mostly on ether.”
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