Former SEC Chairman Calls For The US To Pay Attention To The Benefits Of Cryptocurrencies

Former Securities and Exchange Commission (SEC) chair Jay Clayton admitted that reaching an agreement on crypto regulation in the United States seemed tough for all parties concerned, but pushed the government to take the first move.

Clayton stated in an opinion piece published by the Wall Street Journal on August 25 that, in the midst of the dispute, the government should first embrace the benefits of cryptocurrencies to the financial system before imposing any regulations.

He mentioned benefits like the capacity to enable rapid payments as well as digital asset custody and urged the SEC to issue standards for the custody of tokenized assets.

“To move forward, the U.S. needs, first, to embrace the efficiencies provided by tokenizing such well-understood services as payments and custody of assets in digital form. The presidential working group, led by the Treasury, should move forward on stablecoin rules, identifying the characteristics that make stablecoins a means of payment (akin to money transfer) and not a security or commodity,” Clayton said. 

According to the former chair, crypto participants are concerned that rules may result in investment losses or missed opportunities.

His comments come as the SEC, including current chair Gary Gensler, has been chastised for allegedly limiting cryptocurrency sector development. In this vein, crypto supporters have launched an online campaign to force Gensler’s resignation.

The SEC has been chastised for cracking down on cryptocurrency despite the absence of clear regulations to follow. However, whenever the regulator issues standards for tokenized assets, the government “must go after people who are breaching its laws,” according to Clayton.

“Starting there, we will soon know more. The opposing camps will have little to challenge, and the next step will be easier,” he added. 

Furthermore, Clayton noted that the dispute around asset restrictions such as Bitcoin (BTC) is attributable to the global rise of cryptocurrencies. The previous top regulator pointed out that the United States lacks publicly available standards for licensing, mandated disclosures, and market-wide secondary trading laws.

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