Former US Securities and Exchange Commission Chair Jay Clayton has stated that Bitcoin has not been classified as a security for a long time. While speaking on CNBC’s Squawk Box on March 31, Clayton warned that its status as a non-security still does not protect it from the imposition of new regulations, which, he warned, could be coming soon. There has been an urgency among governments across countries to regulate the crypto industry.
“Bitcoin was declared not to be a security before Clayton became the SEC head.”
When asked why under Clayton’s watch, the SEC did not take a position on Bitcoin regulation. Clayton responded that was because the asset was declared not to be a security before he even took up his position as the head of the regulatory body. He said, “Bitcoin was decided to be not a security before the time I got to the SEC. Therefore, the SEC’s jurisdiction over Bitcoin was rather indirect.” The former SEC chairman was considered a bit harsh on the crypto industry as he did not approve any BTC ETF under his term.
"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
Former SEC chairman currently advises One River Asset Management on cryptocurrencies.
The former SEC chairman Jay Clayton has remained in the industry following his departure from the SEC last year and currently advises One River Asset Management on cryptocurrencies. Although he professes not to have any special insights into what new laws are coming from his time heading up the SEC, he believes the regulatory environment is due for a shake-up. Before Clayton, billionaire hedge fund manager Ray Dalio warned that the US might ban Bitcoin outright just as they did with gold in the 1930s. At the end of his term, Clayton filed a lawsuit against Ripple for selling unregistered security- XRP.