The former chairman of the Securities and Exchange Commission of the United States, Jay Clayton, was appointed by the ex-president of the country, Donald Trump in 2017.
During his tenure as the head of the commission, Clayton is known for his consistent defence of Bitcoin as a store of value. However, in an interview with the CNBC’s Squawk Show on Wednesday, the former SEC Chair made his position on crypto and its regulation clear.
In the interview, he said he has always been a believer in crypto, including the advantages it brings to the financial system.
"I am a huge believer in this technology," says Jay Clayton on #crypto. "The efficiency benefits in the financial system and otherwise from tokenization are immense." pic.twitter.com/WZqKE5cePN
— Squawk Box (@SquawkCNBC) December 15, 2021
These remarks came from Jay Clayton as the current chairman, Gary Gensler, made it clear that there is no plan to ban cryptocurrencies come 2022 though Congress could. In addition, Gensler said the crypto industry would not be different from a wild beast if not regulated.
When asked in the interview if the current SEC Chair is restricting the crypto space than he should, Jay Clayton said there are many sectors linked to the crypto industry based on its diverse purposes, and it is the responsibility of the watchdog to oversee those sectors.
He said, “Crypto in itself is a wide product, and it has diverse functions. Raising capital for a project has to be registered with the SEC, and securities trading must be done on a registered venue. However, there are aspects of crypto that are beyond the SEC’s jurisdictions.”
According to Jay Clayton in the interview, he supports the full implementation of crypto but, of course, recommends appropriate regulation. He also said the government should be reactive to the violation of their established regulations but at the same time must be proactive when it comes to the adoption of the technology for the enhancement of the financial system.
During his term as the head of SEC, Clayton did not approve any Bitcoin Exchange-Traded Fund (ETF), which has now happened under Gary Gensler in 2021 ever since there has been pressure on the agency for approving Bitcoin Futures ETF while rejecting the Spot ETF applications.
Recently, Grayscale submitted a letter to the secretary of the SEC, Vanessa Countryman, where it mentioned that allowing investors to trade the derivatives of an asset while restricting them to trade the asset itself doesn’t make sense, and the SEC doesn’t have any basis to allow that. Also, the SEC was accused of an unfair judgment between two proposals on Bitcoin ETF under the APA – Administrative Protections Acts.
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