We take some great news coming out of the United States on the cryptocurrency industry this month with potentially more good news coming later this fall. On Oct. vi, Gary Gensler, head of the U. Due south. Securities and Exchange Commission (SEC), confirmed during a Business firm Commission on Financial Services hearing that the regulator will not ban cryptocurrency, potentially blazing the path for the world's largest economy to become the global leader in the development of decentralized finance (DeFi) and blockchain technologies.

Gensler, who taught a class on cryptocurrency at MIT, also said that prohibiting cryptocurrency doesn't autumn under the SEC'south mandate and the only mode to legally ban digital assets would exist through Congress. "It'south a affair of how we become this field inside the investor consumer protection that we have and likewise working with bank regulators and others — how do we ensure that the Treasury Section has information technology inside Anti-Money Laundering, tax compliance," Gensler said. He also added:

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

U.South. regulators volition not ban cryptocurrencies

The SEC'south announcement comes after U.S. Federal Reserve Chair Jerome Powell said on Sept. 30 that the regulator has no plans to ban Bitcoin (BTC) and other cryptocurrencies during testimony in Congress. When asked by Rep. Ted Budd, a longtime advocate for the cryptocurrency sector and a fellow member of the Congressional Blockchain Conclave, whether he intended to "ban or limit the use of cryptocurrencies," Powell responded with a resounding "No. [I have] no intention to ban them."

Near of the media reports I accept been reading are headlined with "The U.S. will not ban cryptocurrencies." This is true, but this as well means something much more pregnant: The U.S. will allow cryptocurrency to grow and volition encompass the community to be involved in the procedure of discussing better ways for regulating the industry.

When the largest economy in the globe announces that information technology volition allow cryptocurrency to be with its current financial industry — of course, with proper regulation — all other nations should have detect and brainstorm considering opening their doors and regulating the industry in a fair way that spurs innovation and helps to create new jobs.

The U.S. allows crypto as adoption increases

Every bit we have been seeing, U.S. regulators are incorporating the cryptocurrency industry into its financial system — allowing the traditional banking system to work alongside the new and fast-growing decentralized financial organization. This could enable the U.S. to go a frontrunner in fintech development, blockchain technologies and even into more unconventional parts of decentralized finance such as insurance, trade finance and fundraising.

Related: Crypto in the crosshairs: United states regulators heart the cryptocurrency sector

From a regulatory standpoint, at that place is plenty of work that still needs to be done past the cryptocurrency community and the U.Due south. government to pinpoint where their interest aligns and how they can piece of work tougher, therefore making a smart decision together on how to regulate the industry, including the regulation of stable coins, decentralized exchanges, cryptocurrency derivatives and yield farming, just to name a few.

Information technology is as well very possible that the SEC could approve as many as four Bitcoin futures this autumn, based on Bloomberg Intelligence's count. On Oct. 3, the analyst put the chances the SEC would approve a Bitcoin exchange-traded fund (ETF) at 75%, with ProShares and Valkyrie already leading the race, getting their approvals coming on October. 19 and Oct. 22, respectively.

Related: Bitcoin futures ETFs: Skillful, only non quite there

The U.S. set to atomic number 82 in blockchain technologies

Information technology's also squeamish to note that even American lawmakers are ownership Bitcoin. U.South. Senator Cynthia Lummis disclosed that she scooped up the world'due south largest cryptocurrency on Aug. xvi, worth between $50,001 to $100,000.

Since the U.S. government won't ban cryptocurrencies and American politicians are investing in them, it would exist a good thought for all of us to reevaluate our investment portfolios and take a long look at Bitcoin, Ether (ETH) and other new blockchain technologies.

The U.South. is conspicuously signaling that it will embrace and regulate Bitcoin, blockchain technology and other cryptocurrencies, which from a geopolitical perspective, couldn't have been more than smart — positioning itself to receive massive foreign investment and concenter the all-time talent on the planet. I wait to see the U.S. get the leader in decentralized finance over the coming years every bit regulators keep to work with the cryptocurrency community to build a sustainable and secure industry.

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

The views, thoughts and opinions expressed here are the author'due south lone and do not necessarily reflect or correspond the views and opinions of Cointelegraph.

Raymond Hsu is the co-founder and CEO at Cabital, a cryptocurrency wealth direction platform. Prior to co-founding Cabital in 2022, Raymond worked for fintech and traditional banking institutions, including Citibank, Standard Chartered Depository financial institution, eBay and Airwallex.