US SEC Chairman calls for sooner crypto regulations, stating that he hopes that governmental approach in regards to the cryptocurrency regulation is aiding to protect the future of Blockchain
16 April, AtoZ Markets– The US officials have been so far indecisive in regards to the cryptocurrency regulation during the past months. The decisions made by the government have been somewhat unsynced and chaotic.
US SEC Chairman Calls for Sooner Crypto Regulations
One of the key figures on the US financial regulatory field, US SEC Chairman Jay Clayton has recently spoken in regards to this matter. While the regulatory environment in the US is changing rapidly, it might be difficult to keep up with the general direction of the US regulatory bodies.
Mr. Clayton has recently delivered a speech on ‘Cryptocurrency and Initial Coin Offerings’ at Princeton University. During his speech, he has highlighted a few points. He has acknowledged that not all Blockchains are the same. Therefore, as per Mr. Clayton, they should not all be regulated in the same way.
He has referred to a kind of continuum where all Blockchain-based tokens exist. Mr. Clayton has pointed two sides: one with speculative assets like Bitcoin, and other with more stable assets, such as tokenized securities.
He has also suggested that a cryptocurrency’s functionality might hold different places along the continuum at various stages in its “lifecycle”. This depends on the context of how it is used and traded.
Clayton on Distributed Ledger Technology
During his speech, he has also stressed his belief that “distributed ledger technology has incredible promise for the financial industry.” He noted that he hopes that governmental approach in regards to the cryptocurrency regulation is aiding to protect the future of Blockchain.
He also explained that he would like the government to set regulations sooner. Mr. Clayton has been quoted as saying:
“I think if we don’t stop the fraudsters, there is a serious risk that the regulatory pendulum – the regulatory actions will be so severe that they will restrict the capacity of this new security.”
The SEC official has further stated that he is concerned about the fraudsters’ behavior within the cryptocurrency market, adding:
“The fraudsters flocked to the new and attractive space. I guess that shouldn’t surprise me, but it does.”
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