The outgoing chairman of the SEC, Jay Clayton, who oversaw the rejection of nine Bitcoin ETFs during his tenure, told CNBC that “inefficiencies” in current payment systems continue to fuel the popularity of Bitcoin.
In its appearance Yesterday on CNBC’s Squawk Box Show, Clayton, who is expected to retire at the end of the year, confirmed his agency’s general assessment that Bitcoin is not a security but a payment mechanism and store of value.
“We discovered that Bitcoin is not a security, but a payment mechanism and store of value,” said Jay Clayton, SEC chairman of #btc. “Our current payment mechanisms … have inefficiencies … those inefficiencies are what are driving the Bitcoin boom.” pic.twitter.com/3r1mxzfgpi
– Squawk Box (@SquawkCNBC) 19th November 2020
The president was heavily criticized by the Bitcoin community for having a firm grip on Bitcoin and cryptocurrencies. But still, In principle, Clayton was never a staunch opponent of Bitcoin during his years as chairman of the SEC, but he regularly voiced concerns that average investors could be exposed to unnecessary risk when investing in a Bitcoin ETF.
This risk arises from the SEC’s perception that the largely unregulated nature of some Bitcoin exchanges makes it too easy to manipulate the price of BTC. With Clayton as the SEC chairman, some Bitcoin proponents are in favor believe The likelihood of a Bitcoin ETF getting approved is now higher than ever.
Newsflash: SEC Chairman Jay Clayton to step down in December. This is a big deal for cryptocurrency regulation. Clayton’s successor will eventually approve or reject a Bitcoin ETF. Hopefully the new president understands the innovation.
– Yano (@JasonYanowitz) November 16, 2020
Clayton believes Bitcoin will continue to grow as regulations evolve.
We see that our current domestic and international payment mechanisms are showing inefficiencies. These inefficiencies are driving the rise of Bitcoin … and we’ll see more of them. We will see this mature, and we will see more regulation in the digital payments space.
Clayton was the first SEC member to issue a warning of the potential dangers of investing in ICOs during the “ICO madness” of 2017.and reminded the public that such products were typically considered to be offerings of securities and were regulated accordingly.
“”We don’t regulate Bitcoin as a security, “Clayton said, explaining that BTC is” more of a payment mechanism and stored value “than security.
When people use crypto assets as securities to raise capital for a company, the SEC regulates it. And what happened in the “ICO craze” was people took advantage of them and essentially offered public securities without registering them with the SEC.
Clayton was nominated for the SEC presidency by President Donald Trump in January 2017 and will step down as one of the agency’s oldest presidents. In June 2020, Trump named Clayton to succeed the outgoing U.S. attorney for New York’s Southern District, a position he sought out of a strong desire to pursue his civil service career.
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