SEC Chairman: The United States will not mimic China's ban and will adopt a similar stance as the Federal Reserve.

In the past month, China issued a final ultimatum on the cryptocurrency industry, imposing comprehensive restrictions on various trading and mining activities. During yesterday's House hearing, Congressman Ted Budd raised relevant questions to SEC Chairman Gary Gensler about this event, wondering if the United States would also adopt such aggressive policies. On the other hand, Taiwan's Deputy Governor of the Central Bank, Chen Nan-guang, recently expressed his personal stance on cryptocurrency regulation, leaning towards a prohibition approach.

SEC to Take Different Approach

Ted Budd clearly asked the chairman at the outset if he supported China's approach and might implement a similar ban.

"Our approach is quite different," said Gary Gensler.

He stated that any ban would require congressional legislation, focusing on consumer and investor protection, and collaborating with banking regulatory agencies to address anti-money laundering, tax compliance, and the financial stability issues caused by stablecoins. Additionally, Gary Gensler reiterated that many cryptocurrencies involve investment contracts and may even fall under the category of securities.

Ted Budd also inquired about the innovation in the crypto industry and what changes it has brought for investors who engage in investment activities daily. Gary Gensler stated:

The crypto industry promotes economic growth and allows people to access more capital, but regardless of how future policies are formulated, investor protection is crucial for the long-term survival of the crypto industry.

Aligned with the Federal Reserve

The SEC's current stance on cryptocurrencies is consistent with Federal Reserve Chairman Jerome Powell's remarks during a congressional hearing on September 30, when he was asked if there were intentions to restrict or ban the use of cryptocurrencies similar to China, to which Jerome Powell also indicated no plans to ban cryptocurrencies.

Taiwan Central Bank Deputy Governor Chen Nan-kuang: Inclined to Ban Bitcoin

On the 5th at the World Investors Week Joint Forum in Taipei, Taiwan Central Bank Deputy Governor Chen Nan-kuang discussed how to regulate cryptocurrencies in a video interview with Nobel Prize-winning economist Paul M. Romer. Romer suggested a direct ban as cryptocurrencies lack social value and only expand investment bubbles; Chen Nan-kuang expressed a similar stance to Romer, but as a central bank deputy governor, he believed that stringent regulation should be avoided. While some countries may opt for a complete ban, Taiwan still relies on indirect regulation through anti-money laundering and anti-terrorist financing measures.