Jay Clayton, former US SEC chairman, has warned that new Bitcoin regulations will come very soon, both directly and indirectly.
April 2, 2021 | AtoZ Markets – Jay Clayton, former chairman of the US SEC, said Bitcoin was not considered a security token for a long time. But during a recent interview on CNBC’s Squawk Box program, Clayton warned that BTC’s non-security status does not protect it from the imposition of new regulations, which may come soon.
"Where digital assets land at the end of the day–will be driven in part by regulation both domestic and international, and I expect that regulation will come in this area both directly and indirectly," says Former SEC Chairman Jay Clayton on #bitcoin. pic.twitter.com/voWcgCFqOH— Squawk Box (@SquawkCNBC) April 1, 2021
Presenter Andrew Ross Sorkin pointed out that, under Clayton’s leadership, the SEC has taken no position on Bitcoin regulation. The former president replied that the reason was due to the fact that the asset was not considered a security even before he became head of the SEC:
“It was decided that Bitcoin was not a security before I took that role at the SEC. Therefore, the SEC could not regulate Bitcoin directly.”
Following his resignation from the SEC in December 2020, Clayton has nonetheless remained in the industry and currently holds a crypto-related role on One River Asset Management’s advisory board.
While he claims he is not sure which legislation is about to be introduced, he believes the regulatory framework needs a shake up:
“The direction of the crypto sector will be partly guided by regulations, both national and international. As a private citizen, I expect these will come both directly and indirectly: they will depend on how cryptocurrencies will be held by banks, by security accounts. , from taxation and so on. We will see the regulatory framework evolve.”
Clayton’s statements come just a week after Ray Dalio, a billionaire hedge fund manager, warned that the US government could ban Bitcoin just as it did with gold in the 1930s.
His comments on Bitcoin’s status as a non-security are also interesting from the point of view of the ongoing lawsuit between Ripple and the SEC: the company wonders why, unlike Bitcoin and Ethereum, XRP is considered a security. The SEC explained that the distinction is that XRP’s decision-making power is centralized.
Marc Powers, a former SEC attorney , however, believes the government agency is operating outside its area of expertise in its battle against Ripple and its executives.
Think we missed something? Let us know in the comment section below.