Former SEC Chief Believes Cryptocurrency Technology is Here to Stay
Former Chairman Security Exchange Commission Jay Clayton says he is optimistic about crypto’s future and DeFi. In an interview with the popular CNBC show “Squawk box,” Clayton believes that the technology will stay despite the intensified efforts by the SEC. Speaking to CNBC on Thursday, the former SEC boss was upbeat about the use of cryptocurrency and emphasized the importance of determining what analogies certain crypto-based products possess.
In his tenure as head of the monetary regulatory body, Clayton was criticized for his failure to certify the establishment of a Bitcoin-based ETF and filing a lawsuit against Ripple. Clayton, who now sits as a member of the advisory board of One River Digital and Fireblock, was heavily bashed for his rash attitude towards the crypto industry. He has turned to become an advocate for cryptocurrency but maintains that regulations are essential for the safety of the investors and the economy.
Clayton Suggests Building Upon Existing Rules
In the light of the recent attacks on the crypto world, particularly against Coinbase and Ripple, the famous attorney referenced his op-ed in the Wall Street Journal, where he suggested that a regulatory framework should be created based on existing centralized finance protection rules. He added that it is crucial to ascertain what analogies some cryptocurrencies have before deciding the next line of action. Does it look like a money market mutual fund or not?
The SEC Vs. Crypto Platforms
The SEC has continuously reiterated that it would clean the crypto space and enforce regulations. The monetary regulator first launched an attack against Ripple over trading irregularities. According to the SEC, Ripple’s XRP is security, which the crypto company utterly disagrees with. This has led to a series of back and forth court orders, with the latest one dismissing Ripple’s request to obtain the SEC employees’ trading data.
The most recent is against U.S. exchange Coinbase for trying to launch its Lend program. Coinbase revealed that it had received a warning about a potential lawsuit from the SEC after stating that it had been in contact for months with the regulator concerning the launch of the high yield program. Since the threat from the SEC, Coinbase has been reinforcing its legal and compliance team and looking for new hires with the intent of meeting with regulators next month to discuss a regulatory framework.
The crypto exchange has posted several openings on the website, seeking qualified individuals, especially those with good political judgment and experience managing politicians and media fiascos. Coinbase intends to meet up with U.S. regulators to discuss what is next for its product offerings after the recent spat with the SEC. Coinbase wants the regulators to set up a “sensible regulation” for the industry.
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