Recently, Matt Levine, one of Bloomberg’s prominent columnists, argued in his article that the United States Securities and Exchange Commission (SEC) can no longer consider a complete ban on cryptocurrencies.
According to Levine, the extensive influence of the sector makes such a ban practically impossible. He referenced former SEC Chairman Gary Gensler’s stringent stance and highlighted that ignoring cryptocurrencies is also not a plausible approach.
SEC No Longer Considers a Crypto Ban Possible
In his opinion piece, Levine emphasized that the notion of banning cryptocurrencies in the U.S. is a thing of the past, asserting that “that ship has already sailed.” The market’s massive valuation, institutional investments, and expanding user base complicate politicians’ ability to support a ban.
Former chairman Gary Gensler effectively enforced a ban by classifying most coins as securities requiring registration. Levine argued that this perspective disregards experimental or community-driven projects and stifles innovation.
In his article published in Bloomberg, the author reminded that the SEC cannot opt for either a ban or indifference, as the crypto economy is integrated into the business models of various actors, from technology firms to financial giants.
According to Levine, the central question in Washington is now “how to regulate.” Drafting rules that clarify operational areas and responsibilities has become a political necessity, akin to the early years of the internet.
Pointed to the SEC for Suitable Regulations
Cryptocurrencies’ dual nature as both a payment tool and a speculative investment places pressure on regulators. Levine acknowledged that coins have security-like traits but stressed that existing rules cannot be applied directly, calling for a tailored framework. This is where current chairman Paul Atkins’ “Project Crypto” initiative comes into play. Levine suggested that making various types of cryptocurrencies registerable under SEC guidance could balance investor protection with innovation.
Atkins’ statement, “Most coins are not securities,” indicates a significant softening of the SEC’s stance. Levine believes this approach can support market oversight and technological advancement through dialogue between the sector and the regulator.
The author proposed that reduced disclosure obligations derived from securities laws could protect investors from misleading promises while preserving projects’ innovation pace. Thus, the demand for transparency would incorporate initiatives into the system rather than pushing them entirely out of regulation.
