The United States will become the global crypto and blockchain leader

We have some good news from the United States on the cryptocurrency industry this month and potentially more good news later this fall. October 6 Gary Gensler, head of the U.S. Securities and Exchange Commission (SEC), confirmed during a hearing by the House Financial Services Committee that the regulator will not ban cryptocurrencies, potentially leading the way for the world's largest economy to become the world leader in the development of decentralized finance (DeFi) and blockchain technologies.

Gensler, who taught a class on cryptocurrencies at MIT, also said that banning cryptocurrencies is not within the mandate of the SEC and that the only way to legally ban digital assets would be through Congress. “It's a question of how we get this field within the investor consumer protection that we have and also of working with banking regulators and others; how do we make sure the Treasury Department has it in Anti-Money Laundering, tax compliance, "Gensler said. He also added:

"Many of these tokens meet the test of being an investment contract, a note or a security."

US regulators won't ban cryptocurrencies

The SEC 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 congressional testimony. When asked by Rep. Ted Budd, a longtime cryptocurrency advocate and member of the Congressional Blockchain Caucus, if he intended to "ban or limit the use of cryptocurrencies," Powell answered with a resounding “No. [I have] without intention of prohibiting them. "

Fed Chairman Powell says he has no intention of banning #Bitcoin and cryptocurrencies pic.twitter.com/i2zfRPk1je

- LilMoonLambo (@LilMoonLambo) September 30, 2021

Most of the media reports I have been reading are titled "America will not ban cryptocurrencies." This is true, but it also means something much more significant: The US will allow cryptocurrency to grow and accept the community to get involved in the process of discussing better ways to regulate the industry.

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

US Enables Crypto As Adoption Increases

As we have been seeing, US regulators are incorporating the cryptocurrency industry into their financial system, allowing the traditional banking system to work alongside the rapidly growing new decentralized financial system. This could allow the US to become a pioneer in the development of fintech, blockchain technologies, and even less conventional parts of decentralized finance such as insurance, trade finance, and fundraising.

Related: Crypto in crosshairs: US regulators eye cryptocurrency sector

From a regulatory standpoint, there is still a lot of work to be done by the crypto community and the US government to identify where their interests align and how they can work the hardest, therefore making a decision. smart about regulating the industry. including regulation of stablecoins, decentralized exchanges, crypto derivatives, and yield agriculture, just to name a few.

It's also quite possible that the SEC could approve up to four Bitcoin futures this fall, based on the tally by Bloomberg Intelligence. On October 3, the analyst put the opportunities the SEC would approve a 75% Bitcoin exchange-traded fund (ETF), with ProShares and Valkyrie already leading the race, obtaining their approvals on October 19 and 22, respectively.

Related: Bitcoin Futures ETF: Good, but not quite

The United States prepares to lead blockchain technologies

It is also good to note that even US lawmakers are buying Bitcoin. US Senator Cynthia Lummis revealed that she picked up the world's largest cryptocurrency on August 16, with a value of between $ 50,001 and $ 100,000.

Since the US government will not ban cryptocurrencies and US politicians are investing in them, it would be a good idea for all of us to re-evaluate our investment portfolios and take a look at Bitcoin, Ether (ETH) and other new blockchain technologies.

The United States is clearly indicating that it will adopt 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 the US to become the leader in decentralized finance in the years to come as regulators continue to work with the crypto community to build a safe and sustainable industry.

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

The 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.