On August 25th, Jay Clayton, former Chairman of the US SEC (Securities Exchange Commission), weighed in on crypto regulation in the country in an interview with the Wall Street Journal. He agreed that getting lawmakers to agree on regulations for digital currencies is not an easy task.
Clayton Ask SEC To Issue Guidelines For Tokenized Assets
Meanwhile, the former Chairman advised the country to make the first move. According to Clayton, the country must first embrace crypto, its benefits, and its impact on the financial system before working on regulations.
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In addition, Clayton highlighted some benefits of cryptocurrencies. One of them included the usage of crypto for quick digital payment. Therefore, he asked the regulator to provide rules for tokenized assets custody.
“The U.S. has to accept the benefits of tokenizing services such as assets custody and payments in digital form. Afterwards, the U.S. Treasury and presidential working group can issue rules for stablecoins, identify what makes them good for payment and not a commodity or security,” Clayton stated.
Furthermore, the ex-chairman highlighted that there is a great fear among crypto investors. This fear is because they believe regulations would lead to losses or missed opportunities for them.
Clayton’s advice is coming amid the huge criticism the SEC and its current Chairman, Gary Gensler, have faced recently. Lawmakers and crypto supporters have accused the agency of stifling growth in the crypto sector.
The US SEC Chairman Faces Criticism From The Crypto Community
Months back, several crypto supporters had signed a petition online calling for the resignation of Gensler. Recently, crypto supporters called out the Chairman for his remarks towards the crypto sector.
One major criticism is that the regulator has been using force to regulate the crypto sector despite the inadequate regulations guiding the sector. However, Clayton said the regulator should go after defaulters after it unveils its tokenized assets guidelines.
Also, the former Chairman of the SEC said that the debate on regulating cryptocurrencies is because the sector is new and expanding. As a result, Clayton said the country does not have readily available legislation for the sector.
The U.S. does not have any mandatory disclosures, readily available licensing requirements, or rules for market wide secondary trading. In a meeting with the Wall Street Journal, the current Chairman of SEC, Gensler, noted that securities laws would apply to the latest technologies like digital currencies.
Only clear regulations would solve the issue of which assets fall under securities and those under commodities. Meanwhile, the regulatory climate in the U.S. is taking shape as lawmakers have issued several crypto bills.