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SEC: It would be a foolish thing for the government to ban bitcoin

According to SEC Commissioner Hester Peirce, the US government could certainly try to ban Bitcoin but doing so would be “foolish.”

SEC Commissioner Hester Peirce

SEC Commissioner Hester Peirce (Image: Wall Street Journal)

During a MarketWatch virtual discussion panel, “How to Invest in Crypto,“ the famous Bitcoin-friendly lawyer – affectionately also known as “Crypto Mom” among enthusiasts – reiterated her belief that the US remains behind the rest of the world when it comes to the regulation of digital assets.

But Peirce added that with the arrival of new SEC chairman Gary Gensler, who understands the crypto market, things are expected to move in the right direction.

“I think we were past that point [of banning Bitcoin in the US] very early on because you’d have to shut down the internet,” Peirce said. “I don’t see how you could ban it. You could certainly make the effort. It would be very hard to stop people from doing it [trading Bitcoin],” she said. “So I think it would be a foolish thing for the government to try to do that.”

The idea of ​​banning Bitcoin and cryptocurrencies (i.e., making it illegal to keep these assets) is not an unrealistic prospect, according to some. Bridgewater Associates billionaire investor and founder Ray Dalio, for example, has said several times that the government is likely to ban the cryptocurrency transaction.

Ray Dalio: Bitcoin could be banned by governments as they did in the past with gold

Ray Dalio: Bitcoin could be banned by governments as they did in the past with gold

A British financial adviser opened a petition this year asking the UK government to make cryptocurrency transactions illegal. India is a country that is currently preparing to prevent its citizens from even having decentralized digital assets, and Turkey is banning cryptocurrencies transactions in the country starting on April 18.

Although, as Peirce said, in reality this would be very difficult: the technology is likely to overcome government attempts to limit the use of Bitcoin, since people will always be able to download Bitcoin wallet software, run a node and make transactions as long as they have access to the internet. What may be more likely, in the short to medium term, are clearer Bitcoin regulations.

Peirce added that the US government was “behind the curve” regarding crypto regulation. “We’ve seen other countries take, I would say, a more productive approach,” she said. “We really need to turn that around.

“And I’m optimistic with a new chairman coming in with a deep knowledge of these markets that is something we could do together—build a good regulatory framework.”

With informations: Decrypt

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