SEC Clayton: Agency Has Taken A ‘Measured But Proactive’ Approach To Crypto Regulation
The chairman of US Securities and Exchange Commission (SEC) has explained that the US regulators are taking measured approach when it comes to crypto regulation that is helpful to both individual and institutional investors, Cointelegraph reports.
The SEC chair, Jay Clayton, made the remarks when he updated the US Senate committee on Banking on the regulator’s policy when it comes to blockchain and cryptocurrencies. Clayton said,
“As I have previously stated, I am optimistic that developments in distributed ledger technology can help facilitate capital formation, providing promising investment opportunities for both institutional and Main Street investors,”
“Overall, I believe we have taken a measured, yet proactive regulatory approach that both fosters innovation and capital formation while protecting our investors and our markets.”
Although Clayton claims that the SEC has undertaken a balanced view on cryptos, the regulator has come under scrutiny for some of the policies it has crafted in the recent past. The regulator has explained that various firms that had their initial coin offerings (ICOs) in the last two years are still under investigation. A good example of such a case involved Canadian firm Kik which almost led to the firm shutting down its operations in October.
Clayton was also asked about Facebook’s led Libra project which he explained that since the crypto was here it should be dealt with decisively. Clayton also indirectly stated that the regulator took action to block the sale of Telegram token which he said was unregistered in the US.
Early this month, Clayton was one of the regulators in the US who wrote a joint report advising the Federal Reserve on the possible challenges that might come with mass adoption of stablecoins and why the Fed should develop its own digital currency.