SEC Chair Gensler says a crypto ban would be ‘up to Congress’

Securities and Exchange Commission (SEC) chair Gary Gensler told the House Financial Services Committee this week that the SEC would not follow China’s lead and ban cryptocurrencies. Instead, he emphasized the need for the industry to follow investor and consumer protection rules, alongside anti-money laundering and tax laws.

Why should we care?
Gensler’s previous comments have rattled industry practitioners. In September, Gensler called crypto a “highly speculative asset class” requiring tighter oversight. The same month, the regulator reportedly threatened to sue Coinbase over plans to roll out a crypto lending program. The company eventually pulled back the launch of the offering in response to the move. In his remarks this week, Gensler emphasized the need for crypto exchanges to register with the SEC, and he highlighted the potential systemic risk posed by stablecoins. Ultimately, a ban on crypto would be “up to Congress” and not the SEC, he said. Gensler’s comments echo recent remarks from Federal Reserve Chair Jerome Powell, who told a congressional hearing on September 30 that he had “no intention” of banning crypto.