The U.S. will become the global leader in encryption and blockchain

We have some good news about the cryptocurrency industry from the United States this month, and there may be more good news later this fall. October 6, Gary GenslerThe head of the U.S. Securities and Exchange Commission (SEC) confirmed at the House Financial Services Committee hearing that Regulators will not ban cryptocurrencies, May pave the way for the world’s largest economy to become a global leader in the development of decentralized finance (DeFi) and blockchain technology.

Gensler, who teaches cryptocurrency courses at MIT, also stated that banning cryptocurrencies is not within the scope of the SEC’s responsibilities, and the only way to legally prohibit digital assets is through Congress. “This is the question of how we have access to this area within the scope of investor consumer protection that we have, and how we can work with banking regulators and other agencies-how do we ensure that the Ministry of Finance has it in terms of anti-money laundering, tax compliance ,” Gensler said. He also added:

“Many of these tokens have indeed passed the test of becoming investment contracts, bills or securities.”

U.S. regulators will not ban cryptocurrencies

In the US Federal Reserve Board Chairman Jerome Powell stated on September 30 that the US Securities and Exchange Commission announced The regulator has no plan to ban Bitcoin (Bitcoin) And other cryptocurrencies during their testimony in Congress.When asked whether Ted Budd, a longtime advocate of the cryptocurrency industry and a member of the Congressional Blockchain Caucus, intends to “ban or restrict the use of cryptocurrencies,” Powell Responded Accompanied by a resounding “No. [I have] No intention to ban them. “

The headline of most media reports I have read is “The United States will not ban cryptocurrencies.” This is true, but it also means more important things: the United States will allow the development of cryptocurrencies and will involve the community in the process of discussing better ways to regulate the industry.

When the world’s largest economy announced that it would allow cryptocurrencies to coexist with the current financial industry-of course, under proper supervision-all other countries should pay attention and begin to consider opening their doors to regulate the industry in a fair manner. To stimulate innovation and help create new jobs.

As adoption increases, the U.S. allows encryption

As we have seen, US regulators are incorporating the cryptocurrency industry into their financial system-allowing the traditional banking system to keep pace with the new, fast-growing decentralized financial system. This can make the United States a leader in the development of financial technology and blockchain technology, and even enter the non-traditional parts of decentralized finance, such as insurance, trade finance, and fundraising.

related: Cryptocurrency in the crosshairs: U.S. regulators pay attention to the cryptocurrency industry

From a regulatory perspective, the cryptocurrency community and the U.S. government still have a lot of work to do to determine where their interests are and how they can work harder, so as to jointly make informed decisions on how to regulate the industry, including stablecoins. Regulations, decentralized exchanges, cryptocurrency derivatives, and income agriculture, to name a few.

According to Bloomberg Information, the SEC is also likely to approve up to four Bitcoin futures this fall. October 3, Analyst puts the opportunity The US Securities and Exchange Commission will approve the Bitcoin Exchange Traded Fund (ETF) at a rate of 75%. ProShares with Valkyrie It has taken the lead and was approved on October 19 and October 22, respectively.

related: Bitcoin futures ETF: good, but not enough

The U.S. will lead blockchain technology

It is worth noting that even American lawmakers are buying Bitcoin.U.S. Senator Cynthia Loomis Revealed she picked it up The world’s largest cryptocurrency on August 16 was valued between US$50,001 and US$100,000.

Since the U.S. government will not ban cryptocurrencies and U.S. politicians are investing in them, all of us re-evaluate our investment portfolio and focus on Bitcoin and Ethereum for a long time (Ethereum) And other new blockchain technologies.

The United States has made it clear that it will accept and supervise Bitcoin, blockchain technology and other cryptocurrencies. From a geopolitical point of view, these cryptocurrencies cannot be smarter-positioning themselves as receiving large amounts of foreign investment and attracting the best on earth Talents. As regulators continue to work with the cryptocurrency community to build a sustainable and safe industry, I expect the United States to become a leader in decentralized finance in the next few years.

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

The views, thoughts, and opinions expressed here are only those of the author, and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Raymond Hsu He is the co-founder and CEO of Cabital, a cryptocurrency wealth management platform. Before co-founding Cabital in 2020, Raymond worked in fintech and traditional banking institutions, including Citibank, Standard Chartered, eBay and Airwallex.