Former US Securities and Exchange Commission Chair Jay Clayton has said that Bitcoin hasn't been classified as a safety for quite a while. But
Former US Securities and Exchange Commission Chair Jay Clayton has said that Bitcoin hasn’t been classified as a safety for quite a while.
But talking on CNBC’s Squawk Box on March 31, Clayton warned that its status as a non-security still does not protect it in the imposition of new regulations that, he warned, could be arriving shortly.
‘where electronic assets land at the end of the day–will be driven in part by regulation both domestic and international, and that I expect that regulation will likely arrive in this area both indirectly and directly,’ says Former SEC Chairman Jay Clayton on #bitcoin. pic.twitter.com/voWcgCFqOH
– Squawk Box (@SquawkCNBC) April 1, 2021
Host Andrew Ross Sorkin pointed out under Clayton’s view the SEC didn’t sit on Bitcoin regulation. Clayton responded that was since the strength has been declared not to be a safety before he even took up his position as the head of the human anatomy.
‘Bitcoin has been determined to be no safety ahead of the time that I got to the SEC. As a result, that the SEC’s authority over Bitcoin was rather grim.’
Clayton has stayed in the industry following his departure from the SEC in December 2020 and currently advises 1 River Asset Management on cryptocurrencies.
Though he professes to not have any special insights into what new legislation are coming out of his time going up the SEC, he believes that the regulatory environment is due for a shake up.
‘where electronic assets land at the close of the afternoon […] will probably be pushed in part by regulation-both domestic and international-and I anticipate, and I’m talking as a citizen now, that regulation will probably arrive within this area both indirectly and directly whether it is through the way these will be held in banks, security reports, taxation and the like. We will see this regulatory environment burst.’
His remarks concerning Bitcoin’s standing as a non-security will also be intriguing in light of Ripple’s allure to the SEC for documents from the agency to find out how exactly it arrived at the conclusion which Bitcoin along with Ethereum were securities.
The organization and its backers have repeatedly contended that XRP is not a security however the SEC thinks it’s markedly different due to being morcentralized. Former SEC lawyer Marc Powers told Cointelegraph the bureau is executing significant overreach in its own case from Ripple and its executives.