Former SEC chief Jay Clayton says new regulations on Bitcoin will come. Clanton warns that these regulations will occur both directly and indirectly.
Clayton, former chairman of the US Securities and Exchange Commission, stated for a long time that Bitcoin was not classified as a security (negotiable instrument).
But Clayton, who joined CNBC’s Squawk Box program on March 31, said that the “no security” status of Bitcoin could not protect it from imposing new regulations. And he warned that this situation will happen very soon.
Andrew Ross, the host of the program, mentioned that the SEC has not taken a position on this regulation under Clayton. Clayton explained that this was due to the fact that Bitcoin was not considered a security when he took office as head of the regulator:
“Before I joined the SEC, Bitcoin was not seen as a security. Therefore, the SEC’s judicial effect on Bitcoin was also very indirect. ”
After leaving the SEC in December 2020, Clayton remained in the industry. He is currently advising One River Asset Management on cryptocurrencies.
Claiming that he had no foresight about what new laws would come from his time as the SEC chairman, Clayton says he believes the regulatory environment will undergo fundamental changes.
“I am currently speaking as a citizen. These regulations are in the securities accounts of these assets, banks, taxation, etc. It will come regardless of how it is held. The arrangements made will be experienced both directly and indirectly. We will see the regulatory environment evolving. ”
In light of Ripple’s objection to the SEC to find out exactly how the institution came to the conclusion that Ethereum and Bitcoin are not securities, Clayton’s comments on the state of Bitcoin are very interesting. Ripple and its supporters have repeatedly argued that XRP is not a security. However, the SEC believes Ripple differs significantly from the others in that it is more centralized.