Former chairman of the US Securities and Exchange Commission Jay Clayton has stated that Bitcoin has not been classified as a security for a long time.
Speaking at CNBC’s Squawk Box on March 31, Clayton warned that his non-security status still did not protect against the introduction of new regulations that he warned might come soon.
“Where digital assets end up at the end of the day is determined in part by national and international regulation, and I expect regulation in this area will be both direct and indirect,” said Jay Clayton, former SEC chairman at #bitcoin. pic.twitter.com/voWcgCFqOH
– Squawk Box (@SquawkCNBC) April 1, 2021
Host Andrew Ross Sorkin pointed out that the SEC did not take a position on Bitcoin regulation under Clayton’s observation. Clayton replied that this was because the asset was not declared as collateral before he even took up his position as head of the regulator.
“Bitcoin was classified as non-security with the SEC prior to my arrival. Therefore, the SEC’s responsibility for Bitcoin was rather indirect. “
Clayton has remained in the industry after retiring from the SEC in December 2020 and is currently advising One River Asset Management on cryptocurrencies.
While he admits he has no particular insight into the new laws emerging from his time as head of the SEC, he believes that the regulatory environment needs to be changed.
“Where digital assets end up at the end of the day […] I assume that regulation in this area will be both direct and indirect, whether it is through the way they are run in banks and security accounts, taxes and the like. We’ll see how this regulatory environment evolves. “
Clayton’s comments come just a week after billionaire hedge fund manager Ray Dalio warned that the US could potentially ban Bitcoin entirely, just as it did with gold in the 1930s.
His comments on the status of Bitcoin as a non-security are also interesting in light of the fact that Ripple asked the SEC for documents from the agency to determine how exactly it came to the conclusion that Bitcoin and Ethereum were not securities.
The company and its supporters have repeatedly argued that XRP is not a security, but the SEC believes it is significantly different due to its morecentrality. Former SEC attorney Marc Powers told Cointelegraph that the agency is carrying out significant violations in its case against Ripple and its executives.