Former SEC chairman Clayton says regulators don’t want controversial use of blockchain in the traditional financial sector
Jay Clayton shared his opinion on the current regulatory environment of the US and confirmed that regulatory bodies don’t want any kind of controversial adoption of Crypto & blockchain technology.
Jay Clayton is a 56 years old American attorney. Between 4 May 2017 to 23 December 2020, he served as the chairman of the United States Securities Exchange Commission (SEC). After Clayton, In early 2021, Gary Gensler secured the SEC chairman position. Clayton was responsible for the regulation of crypto’s Initial Coin Offerings (ICOs), more similar to Securities IPOs, in early 2018. At the time, few ICOs successfully raised a record-breaking $7 billion in funds & that dragged attention of financial regulators.
Recently Jay Clayton appeared in a new interview with Bloomberg Invest. On the recent SEC’s regulatory actions against regulated crypto firms, the interview host asked Clayton whether he would have taken the same actions as current SEC chair Gary Gensler.
Clayton wisely ignored to answer and said that he was not going to criticize/support anybody on behalf of assumptions further he said that he supports the SEC agency, as he was known as a “Crypto Hawk” in the crypto sector during his tenure.
‘Blunt conversations’ on crypto & blockchain technology
Clayton noted that the current situation is different and the regulators are now having “very blunt conversations” around blockchain and cryptocurrency. He also said that they see this innovative sector as another modern financial technology but they’re not ready to allow the crypto & blockchain adoption in controversy with the traditional financial sector.
Further, Clayton shared his personal opinion & support for the stablecoins & said that non-protocol concept based stablecoins are better innovations.
According to Clayton, a true stablecoin should be more similar to what we feel with Bank, where our money remains safe & we trust the system.
“I am remarkably impressed by the functionality of true … stablecoins. Not the algorithmic stablecoin, not the liquidity transformation stablecoin, but a true (stablecoin) backed by the same thing that we back bank accounts by,” Clayton stated.
Earlier this former SEC official John Reed Stark also shared his opinion on the current crypto regulatory environment of the US and suggested people stay away from the crypto exchanges and also said that the SEC agency is in the initial phase of regulatory actions against crypto firms, so more regualtory actions will come soon.
Read also: Crypto Investors avoiding investment in Solana (Sol) coin, Here is why?
