Former chairman of the U.S. Securities and Exchange Commission, or SEC, Jay Clayton, was appointed by ex-President Donald Trump to serve in 2017.
In his tenure as head of the SEC, Clayton often defended Bitcoin (BTC) as a store of value. This past Wednesday, during an interview with CNBC’s Squawk Box show, Jay shared his thoughts on cryptocurrency and how it should be regulated going forward.
The former SEC chair said that he is a “huge believer in crypto technology” and that its efficiency advantages in the financial system and tokenization are enormous.
“I am a huge believer in this technology,” says Jay Clayton on #crypto. “The efficiency benefits in the financial system and otherwise from tokenization are immense.” pic.twitter.com/WZqKE5cePN
— Squawk Box (@SquawkCNBC) December 15, 2021
Clayton’s remarks come as the current SEC chair, Gary Gensler, recently confirmed that the watchdog has no plans to ban crypto, but that U.S. congress could. Gensler warned, however, that crypto in its current form is comparable to the wild west without proper regulation.
Related: SEC chair doubles down, tells crypto firms ‘come in and talk to us’
When asked whether the present chairperson is creating too many restrictions for the crypto industry, Jay said that cryptocurrencies have numerous purposes and are connected to a variety of industries, and the SEC should be in charge of regulating only those sectors that are linked to it.
“Crypto is a wide variety of products, with a wide variety of functions, and the rules of our financial system are clear and long-standing. If you are raising capital for a project, you have to register your capital raising with SEC. If you are trading securities it has to be on a registered venue, But there are many crypto sectors like stablecoins that are not securities and outside of SEC purview.”
Related: SEC Chair wants robust crypto regulatory regime for the US
According to Clayton, cryptocurrencies should be implemented but with appropriate regulation. He said that the government should be “reactive to people who are violating our well-defined laws but proactive in encouraging the…
..
