‘It’s Very Difficult to Ban Peer-to-Peer Technology’
Hester Pierce, commissioner of the U.S. Securities and Exchange Commission, believes that the U.S. government cannot ban bitcoin, arguing that it is very difficult to ban something that is essentially a peer-to-peer technology. The commissioner hopes that with a new chairman who knows bitcoin and cryptocurrencies, the SEC will be able to take a fresh look at some of the reasons why bitcoin is being abandoned by exchange traded funds (ETFs).
SEC commissioner says it is very difficult to ban P2P technology
SEC Commissioner Hester Pierce, also known in the crypto community as Crypto Mom, was asked Thursday in an interview with Fox Business’ Charles Gasparino about the possibility of the Biden administration banning bitcoin.
With the new crypto currency regulations, investors are worried about whether the government will ban crypto currencies, including bitcoin. Some people have warned that governments could ban bitcoin if it becomes a risk to their financial systems. Among them Bridgewater Associates founder Ray Dalio, Michael Berry of Big Short, and Ron Paul.
As a supporter of bitcoin, Pierce urged the SEC to allow bitcoin ETFs. On the possibility of a ban on bitcoin in the US, the commissioner said the following:
I think it’s very difficult to ban something that is essentially a peer-to-peer technology. I think the goal, as with any technology, is to prevent people from using it for illegal purposes and allow them to use it only for legal purposes. That’s what I’m waiting for.
Commissioner Pierce has previously stated that the government would be foolish to try to ban bitcoin by comparing it to shutting down the Internet.
The US government is concerned that cryptocurrencies are being used for illegal activities. Treasury Secretary Janet Yellen has repeatedly stated that cryptocurrencies are primarily used for illicit financing. Earlier, she also said that the finance ministry would work with other regulators to develop appropriate rules for the crypto space.
Fox Business recently reported that regulation of cryptocurrencies could start at the Treasury Department, and the SEC is waiting for guidance from the Treasury Department on a comprehensive regulatory policy for cryptocurrencies.
The SEC also has a new chairman; Gary Gensler confirmed last week that he will lead the commission. He has extensive knowledge of bitcoin and cryptocurrencies, having taught at the Massachusetts Institute of Technology (MIT). Gensler is also the former chairman of the Commodity Futures Trading Commission (CFTC). It is expected to create a level playing field for cryptocurrencies. Last week, the US House of Representatives passed a bill calling on the Securities and Exchange Commission (SEC) and the CFTC to create a task force to deal with digital assets.
On the possibility of the SEC approving a bitcoin ETF this year, Pierce said: With the new president, we can take a fresh look at some of the reasons we rejected bitcoin exchanges. She added: Frankly, Canada is ahead of us right now. They not only have bitcoin exchange products, but also Ether-based exchange products.
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