Jay Clayton: Bitcoin Will Also Come Under Regulation

Bitcoin is not a security, but that does not mean it will not be regulated, said former U.S. Securities and Exchange Commission chairman Jay Clayton.

In response to a CNBC host’s question about why the SEC had previously not taken a stance on regulating digital gold, Clayton said that cryptocurrency had not been recognised as a security.

\”The SEC determined that Bitcoin is not a security before I took the helm of the regulator. But that does not mean that a crypto asset should not be regulated in the future,\” the former official clarified.

Clayton left the post as chairman of the SEC in December 2020 and is currently advising One River Asset Management on cryptocurrencies.

\”I don’t know what laws the SEC is currently passing, but I believe the regulatory framework for cryptocurrencies should be revised,\” Clayton said.

These remarks by Clayton came as Ripple asks the SEC to reconsider the status of Bitcoin and Ethereum. The firm is demanding that the court compel the SEC to share internal documents explaining why these cryptocurrencies are not securities.

Ripple and its supporters have repeatedly stated that XRP is not a security, but the SEC maintains the opposite.

In December 2020, the Commission charged Ripple with selling unregistered securities in the form of tokens worth $1.3 billion. The defendants also included Garlinghouse and co-founder Chris Larsen.

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