The United States will become the global crypto and blockchain leader

We have some good news coming out of the US about the cryptocurrency industry this month with potentially more good news later this fall. On October 6, Gary Gensler, head of the US Securities and Exchange Commission (SEC), confirmed during a hearing in 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 global leader. in the development of decentralized finance (DeFi) and blockchain technologies.

Gensler, who taught a class on cryptocurrency at MIT, also said that banning cryptocurrency does not fall under the SEC’s mandate, and the only way to legally ban digital assets would be through Congress. “It’s a question of how we get this field in the field of investor protection of investors that we have and also work with bank regulators and others – how do we ensure that the Ministry of Finance has it in the field of money laundering, tax compliance,” Gensler said . He also added:

“Many of these tokens meet the test of being an investment contract, a banknote or a security.”

US regulators will not ban cryptocurrencies

The SEC’s announcement comes after US Federal Reserve Chairman Jerome Powell said on September 30 that the regulator has no plans to ban Bitcoin (BTC) and other cryptocurrencies during testimony in Congress. When asked by rep. Ted Budd, a longtime advocate for the cryptocurrency sector and a member of the Congressional Blockchain Caucus, whether he intended to “ban or restrict the use of cryptocurrencies,” Powell replied with a resounding “No.” [I have] no intention of banning them. “

Most of the media reports I have read are entitled “The United States will not ban cryptocurrencies.” This is true, but this also means something much more significant: the United States will allow cryptocurrency to grow and will embrace society to become involved in the process of discussing better ways of regulating the industry.

When the largest economy in the world announces that it will allow cryptocurrency to exist with its current financial industry – of course with proper regulation – all other nations should take notice and start considering opening their doors and regulating the industry in a fair way that encourages innovation and helps to create new jobs.

The United States allows crypto as adoption increases

As we have seen, US regulators are incorporating the cryptocurrency industry into their financial system – enabling the traditional banking system to work with the new and fast-growing decentralized financial system. This could enable the US to become a frontrunner in fintech development, blockchain technologies and even in more untraditional parts of decentralized financing such as insurance, trade finance and fundraising.

Related: Crypto in the crosshairs: US regulators look at cryptocurrency sector

From a regulatory standpoint, there is a lot of work that still needs to be done by the cryptocurrency community and the US government to find out where their interests align and how they can work harder, and therefore make a smart decision together on how to regulate the industry, including regulating stable currencies, decentralized exchanges, cryptocurrency derivatives and dividend farming, just to name a few.

It is also very possible that the SEC could approve as many as four Bitcoin futures this fall, based on Bloomberg Intelligence’s census. On October 3, the analyst set the chances that the SEC would approve a Bitcoin exchange-traded fund (ETF) at 75%, with ProShares and Valkyrie already leading the race, and received their approvals on October 19 and 22, respectively. .

Related: Bitcoin futures ETFs: Good, but not quite there

The United States must be a leader in blockchain technologies

It’s also nice to note that even U.S. lawmakers are buying Bitcoin. U.S. Senator Cynthia Lummis revealed that she acquired the world’s largest cryptocurrency on August 16, valued at between $ 50,000 and $ 100,000.

Since the US government does not want to ban cryptocurrencies and US politicians invest 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 US is clearly signaling that it will embrace and regulate Bitcoin, blockchain technology and other cryptocurrencies, which from a geopolitical perspective could not have been smarter – positioning itself to receive massive foreign investment and attract the best talent on the planet. I expect to see the United States become a leader in decentralized finance over the coming years as regulators continue to work with the cryptocurrency community to build a sustainable and secure industry.

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

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 co-founder and CEO of Cabital, a cryptocurrency asset management platform. Prior to co-founding Cabital in 2020, Raymond worked for fintech and traditional banking institutions, including Citibank, Standard Chartered Bank, eBay and Airwallex.