Bloomberg’s Levine: U.S. Crypto Ban No Longer Feasible
Matt Levine, Bloomberg columnist, argues that a U.S. crypto ban is now impractical due to global adoption. Levine says the debate over a crypto ban has shifted beyond feasibility. He criticizes former SEC Chair Gary Gensler’s view treating most tokens as unregistered securities, deeming enforcement impossible. Levine asserts the SEC, led by Chair Paul Atkins, should tailor existing securities regulations to digital assets rather than ignore or prohibit them. Atkins’ “Project Crypto” aims to streamline digital asset registration and clarify that most tokens are not securities, representing the right approach. Levine concludes that “the ship has sailed” on outlawing cryptocurrency and calls for balanced regulation to protect investors and foster innovation.
Bullish
Levine’s assertion that a full U.S. crypto ban is off the table reduces regulatory risk, a key factor for traders. Historically, regulatory clarity—for example, SEC statements on Bitcoin ETFs—has prompted market rallies. By endorsing tailored SEC oversight through “Project Crypto,” the industry gains a clearer framework. In the short term, traders may see reduced volatility around regulatory headlines. In the long term, structured regulation can foster institutional adoption and market growth, making this news overall bullish.