Former SEC Chairman Jay Clayton Advocates for Nuanced Approach in Dealing with Enforcement Actions on Crypto

June 13, 2023 CryptoExpert Market Analysis
Fiverr
Jay Clayton Nuanced Approach
Fiverr


Join Our Telegram channel to stay up to date on breaking news coverage

The United States Securities and Exchange Commission (SEC) former chair Jay Clayton has spoken out about crypto regulation. He commented on the agency’s recent wave of enforcement actions targeting cryptocurrency exchanges. In his statement, Clayton clarified that crypto and blockchain were just technologies, meaning using them in different aspects of the financial system should be “non-controversial.”

Former SEC Chairman Jay Clayton’s Stance on Crypto

The statement comes after recent moves by the SEC to file illegal brokerage charges against Binance and Coinbase. Notably, these are two of the largest cryptocurrency businesses in the world. In the lawsuit, the regulator claimed that they permitted U.S. consumers to purchase unregistered securities.

Although he backed the SEC and the current statute definitions, Clayton said he had alternative suggestions. The comment came during a joint Bloomberg panel with Dan Morehead, founder and managing partner of Pantera Capital.

bybit

In addition, Clayton made it clear that cryptocurrencies, blockchains are just technologies. In his opinion, incorporating them into other parts of the financial system should be “non-controversial.”

Recognizing Legitimate Uses Amidst Regulatory Challenges

The ex-SEC Chairman Jay Clayton responded to a question about whether he agreed with current SEC Chairman Gary Gensler’s actions. In his answer, he noted that during his tenure, he was regarded as a crypto hawk and that they successfully curtailed the ICO craze. He also expressed his belief that the ongoing discussions about the subject lack the necessary nuance.

As chairperson of the SEC from 2017 until 2020, after being chosen by Trump, Clayton had to cope with the disruptive nature of cryptocurrency. Nevertheless, he thinks crypto and blockchain technology has legitimate uses, unlike current SEC chairman Gary Gensler, who has questioned the utility of crypto.

Tokenization and Stablecoins: Former SEC Chairman Clayton Highlights Benefits

Tokenization is one such application; it entails creating a digital token that represents an underlying asset in a blockchain in order to facilitate easier administration. According to Citi, the tokenization market for assets and securities would be worth $4 billion to $5 billion by 2030. Tokenizing securities, Clayton said, will make the process “more efficient than what we’re doing today.”

In addition, Clayton explained the practical application of stablecoins, which are digital currencies pegged to a stable value, such as the U.S. dollar. As he put it:

I am remarkably impressed by the functionality of true stable stablecoins… it is a remarkable technology at the retail level to be able to transfer dollars around the world.

In addition, Clayton argued that the United States ought to investigate stablecoins because they would make it easier to implement KYC and AML requirements.

 Read More:

Wall Street Memes – Next Big Crypto

Early Access Presale Live Now
Established Community of Stocks & Crypto Traders
Featured on BeInCrypto, Bitcoinist, Yahoo Finance
Rated Best Crypto to Buy Now In Meme Coin Sector
Team Behind OpenSea NFT Collection – Wall St Bulls
Tweets Replied to by Elon Musk

Wall Street Memes

Join Our Telegram channel to stay up to date on breaking news coverage





Source link

Coinmama

Be the first to comment

Leave a Reply

Your email address will not be published.


*