Bitcoin Declared Not a Security “Doesn’t Mean It Should Not Be Regulated,” says Former SEC Chairman
Regulations on digital assets will come both on the domestic and international front and will also come, directly and indirectly, said former SEC chairman Jay Clayton in an interview with CNBC this week.
As we have seen since last year, institutions have been increasingly coming into the cryptocurrency space, which only intensified over the past few months, with Morgan Stanley and Goldman Sachs revealing this week that they are set to offer Bitcoin exposure to their wealthy clients.
Clayton didn’t take a position on digital assets during his tenure in the office, and under his Chairmanship, not a single BItcoin ETF was approved. The cryptocurrency market actually took Clayton’s departure from SEC as a good sign, especially now that Gary Gensler is the nominee for the position.
But now that he is out of the office, he is talking about the regulation. As we reported, Clayton joined One River Management as an advisor this week.
“Bitcoin was decided not to be a security before the time I got to the SEC; therefore, the SEC's jurisdiction over bitcoin was rather indirect.” While already categorized as not a security, Clayton said, “It does not mean it should not be regulated.”
As a matter of fact, the point at which digital assets are at today, cryptocurrencies “will be driven in part by regulation, both domestic and international,” he added. As a citizen, Clayton expects that
“regulation will come in this area both directly and indirectly, whether it's through how these are held at banks or securities accounts, taxation and the like.”