Former SEC Chairman Jay Clayton said that he is actually a huge believer in crypto expressing his trust in the nascent digital currency space and in the technology underpinning the industry as we can read more about it today in our latest cryptocurrency news.
The Former SEC chairman Jay Clayton noted:
“The efficiency benefits in the financial system and otherwise from tokenization are immense.”
The comments were made while speaking in an interview with CNBC’s Squawk Box and came as a shock to a lot of people seeing how Clayton treated the crypto space under his tenure. The SEC at the end of his tenure filed a damning $1.3 billion lawsuit against Ripple for selling XRP coins as securities and the case is still ongoing. When asked about his take on the matter, Clayton didn’t comment saying that the facts come before law enforcement.
Clayton was appointed by former US President Donald Trump in 2017 and served until 2020 which is the time when the SEC rejected most applications for a BTC Exchange-Traded Fund product. The current chair Gary Gensler approved a Bitcoin Futures linked ETF outlining the bias Clayton has against these products. Clayton’s perspective towards crypto seems to be broadening as One River Digital Asset Management became an Advisor. During the interview, Clayton shared his thoughts on how crypto should be regulated:
“Crypto is a wide variety of products, with a wide variety of functions, and the rules of our financial system are clear and long-standing. If you are raising capital for a project, you have to register your capital raising with SEC. If you are trading securities it has to be on a registered venue, but there are many crypto sectors like stablecoins that are not securities and outside of SEC purview.”
As recently reported, IMF directors say crypto regulation has to be on a global level because the fast growth of the sector is intensifying the need for global regulation. The analysis was authored by Tobias Adrian as the Financial counselor and Director of the IMF Monetary and Capital Markets Department, Dong He who is the Deputy Director of Monetary and also Capital Markets Department of the IMF, and finally the Deputy Director of the MCM department Aditya Narain.