SEC Chairman: Bitcoin Will Be Subject To ‘More Regulation’ As It Matures Into A Payment System
SEC Chairman Jay Clayton reiterated in his recent interview with CNBC that Bitcoin is not a security. However, more regulation could still be on the way from other government agencies, he added.
According to him, the leading digital asset resembles a store of value and a payment method. And it has been the “inefficiencies” in the traditional payment mechanisms that are boosting Bitcoin's growth.
But if BTC becomes famous as a payment method, it can be subject to more regulation. Clayton told CNBC,
“I think we will see this maturation, and I think there will be more regulation in the payments (for bitcoin) area.”
“This is why Bitcoin should be neither a currency nor a payment network. The principles of humility & harmony dictate that we should allow technology partners to provide for payments & defer to governments on currency matters. BTC is a purely engineered Store of Value,” commented the CEO of MicroStrategy, Michael Saylor, who has emerged as a leading vocal Bitcoin proponent ever since his company replaced cash with BTC as a reserve asset.
"We determined that bitcoin was not a security, it was much more a payment mechanism and stored value," says SEC Chairman Jay Clayton on #btc. "Our current payment mechanisms–have inefficiencies those inefficiencies are the things that are driving the rise of bitcoin." pic.twitter.com/3r1mxzfgpi
— Squawk Box (@SquawkCNBC) November 19, 2020
Clayton will be stepping down from his position as the SEC Chairman by the end of this year, and the crypto community is excited, expecting the Bitcoin ETF to get the approval finally.
According to analyst Mati Greenspan, Clayton has been “single-handedly” responsible for holding back the progress of a Bitcoin ETF, and “him leaving is really good for Bitcoin & crypto.”
In his interview with CNBC on Thursday, Clayton further elaborated on why the SEC isn’t regulating Bitcoins currently.
“We do not regulate Bitcoin as a security. When people use crypto assets as securities to raise capital for a venture, the SEC regulates that.
And what was happening in the ICO craze was people were using ICOs and essentially making public offerings of securities without registering them with the SEC.”
Very clearly, Clayton has said that the SEC determined “Bitcoin was not a security” but “much more a payment mechanism and store of value,” adding “the government does regulate payments.”
Clayton has been in conversation with Squawk Box host Andrew Ross Sorkin who recently hosted Jamie Dimon, the CEO of JPMorgan, who still has no love lost for Bitcoin.
Dimon said Bitcoin is “not (his) cup of tea,” and if it continues to get bigger and bigger, it will be “regulated.” “My experience with the government is they can regulate whatever they want whenever they feel like it,” coped Dimon.
This may sound like Ray Dalio, who is also concerned about the government outlawing it. Still, the founder of the world’s largest hedge fund Bridgewater Associates recently came out and said that he might be missing something about Bitcoin and “would love to be corrected.”