Jay Clayton Mentions That He Believes in Crypto Technology
Jay Clayton, the former chairman of the Securities and Exchange Commission(SEC), was appointed for the said position by Donald Trump, US President, in 2017. Clayton kept supporting Bitcoin (BTC), counting it as valuable assets during his tenure while heading SEC. Jay mentioned bitcoin along with the importance of its control in the future during his appearance for CNBC’s Squawk Box broadcast on Wednesday.
The former head said he believes in crypto technology along with its efficiency and benefits for the finance industry and tokenization are immeasurable. Views by Clayton come after the present SEC head, Gary Gensler, stated that the SEC does not have any intentions to prohibit crypto coins but that Congress will place regulations. Gensler did caution that cryptocurrency, which is running high in the market, is akin to the Wild West having no adequate regulation.
When questioned if the existing chairman is imposing restrictions on the crypto business, Jay replied that these cryptocurrencies are serving several purposes, having tied up with various industries. The SEC should restrict those industries.
The financial system’s laws are clear, and crypto has vast products and multiple functions. You must file the capital raising with the Securities and Exchange Commission (SEC) to raise funds for any project. You must do it on a regulated exchange if you are trading securities. However, specific crypto sectors, such as stablecoin, are not securities and fall outside the SEC’s jurisdiction.
Cryptocurrencies, as per Clayton, need a good introduction in the market, along with adequate regulations and laws. He also believes that the government must act responsibly towards users who break the rules but also support the enforcement of those laws.
During Clayton’s tenure, a Bitcoin ETF was restricted, but it will now be available in 2021 under the supervision of Gary Gensler. On many occasions, the SEC was questioned for not accepting any of the ETF applications, except Bitcoin ETFs of futures.