Former U.S. Securities and Exchange Commission (SEC) Chairman Jay Clayton has discussed what he believes to be the “appropriate way” to regulate crypto. The former regulator added that “the classification issues” about whether a crypto token is a security or a commodity are “overblown,” emphasizing: “Most of those decisions are pretty easy.”
Ex-SEC Chair Discusses Crypto Regulation
Former chairman of the U.S. Securities and Exchange Commission (SEC), Jay Clayton, discussed cryptocurrency regulation at the Council on Foreign Relations last week.
Responding to a question about what the appropriate way to regulate the crypto industry would be, the former SEC chair stated:
The appropriate way to regulate crypto is to recognize that it’s a technology, not a product.
“It’s a different technology for almost all cases, delivering a product that we already know, sometimes in a more efficient way,” he added.
“I’m very sympathetic … to the entrepreneurs who want to reach out to the public to raise capital, and I’m very sympathetic to the retail investors who want those opportunities,” Clayton also said. Noting the widespread frustration that prevailed during the initial coin offering (ICO) craze and among cryptocurrency enthusiasts, he stressed: “We should be looking at making it easier to raise capital for small or medium-sized companies, and making it easier for nonaccredited investors or even accredited investors to participate in those opportunities.” He continued: “I don’t know if it’s gonna be worth a little or a lot but I’m at a point where I think the market can decide.”
Commenting on the ongoing debate in the U.S. about whether certain crypto tokens are securities or commodities, the former SEC chief opined:
I think the classification issues about whether a product is a security or a commodity are overblown. Most of those decisions are pretty easy.
Commenting on Clayton’s statement claiming that the decision on whether a crypto token is a security or a commodity is easy, Ripple CEO Brad Garlinghouse wrote on social media platform X: “I’m in disbelief.” His company just spent about $200 million fighting the SEC over the status of XRP. SEC Chairman Gary Gensler is of the opinion that all crypto tokens, except bitcoin, are securities.
What do you think about the statements by former SEC Chairman Jay Clayton on crypto regulation? Let us know in the comments section below.
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