Former SEC chief calls to reconsider the approach to crypto regulation

Among the benefits of digital assets, Jay Clayton singled out a convenient way to store and fast transactions

28.08.2022 - 07:30

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What’s new? Former US Securities Exchange Commission (SEC) chair Jay Clayton has acknowledged that finding a compromise on the regulation of cryptocurrencies in the United States seems almost unattainable but urged authorities to take the first step in this direction. According to The Wall Street Journal, he said that the government should study and take advantage of the benefits of digital assets for the country’s financial system before imposing any restrictions. Among the benefits of cryptocurrencies, Clayton singled out fast payments and a convenient way to store assets.

Material by The Wall Street Journal

What else did Clayton add? The former SEC chair also urged the regulator to provide guidelines on the storage of tokenized assets.

“The presidential working group, led by the Treasury, should move forward on stablecoin rules, identifying the characteristics that make stablecoins a means of payment and not a security or commodity,” Clayton said.

According to the former chair, the crypto community fears that regulation is likely to result in losses for investors or missed opportunities.

Clayton’s main comment to the SEC concerns the suppression of the industry despite the lack of clear rules to follow. In addition, he stated that there are no publicly available requirements on licensing in the United States, mandatory disclosures, and secondary-trading rules across the market.

Earlier, the SEC’s current head Gary Gensler invited other financial agencies to join forces to develop comprehensive rules for crypto regulation. He noted that he was working on a “memorandum of understanding” with the Commodity Futures Trading Commission (CFTC), which already created an office to oversee cryptocurrencies.

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