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SEC Commissioner Says Bitcoin Ban would be Foolish

SEC Commissioner Says Bitcoin Ban would be Foolish

An American lawyer and Commissioner at the U.S. SEC, Hester Peirce, says that a Bitcoin government ban would be foolish. She believes that it would be difficult to prevent anyone from trading in digital currencies. During a MarketWatch virtual discussion, “How to Invest in Crypto,” the famously Bitcoin-friendly lawyer restated her view that the U.S. remains behind the rest of the world when it comes to regulation of digital assets. However, Peirce continued that with the new, crypto-savvy SEC Chairman Gary Gensler stepping in, things would conceivably progress in the right direction. 

During a virtual panel discussion conducted by MarketWatch, Peirce highlighted the significance of a clear crypto regulatory framework in the U.S. Peirce is a famous Bitcoin-friendly lawyer in the U.S. The crypto community also awarded Peirce with the title of ‘Crypto Mom.’ She revealed her optimism in creating an excellent regulatory framework in the U.S. to handle Bitcoin and other digital currencies. Regulatory veteran Gary Gensler’s nomination for SEC chairman was confirmed by the Senate Banking Committee last month. His confirmation will create a big difference in whether a crypto ETF gets passed, as per Peirce.

Implementing Bitcoin Ban will be a Challenge for Governments.

Her comments oppose the opinions put forth by Ray Dalio. Billionaire investor Ray Dalio opined last month that there is a good probability of Bitcoin getting banned. It is similar to how the U.S. government banned gold ownership in the 1930s. The idea of outlawing Bitcoin and cryptocurrencies is not an unrealistic possibility, according to some. This year, one British financial advisor set a petition asking the U.K. government to make cryptocurrency transactions illegal. Moreover, India is also planning to implement a blanket ban on cryptocurrencies. 

However, as Peirce said, in reality, implementing the ban would be very hard. Technology will surpass the government’s attempts to restrict Bitcoin use since people will always be capable of downloading Bitcoin wallet software, running a node, and executing transactions as long as they have access to the internet. What may be more likely, in short to medium term, are more explicit Bitcoin regulations. The price of the world’s biggest cryptocurrency has increased significantly in the last few months. Bitcoin commenced this year at a price level of about $29,000. The digital asset is trading at almost $59,000 with a market cap of $1.1 trillion.

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