Jay Clayton, a former chairman of the Securities and Exchange Commission (SEC), has recognized that a consensus on crypto legislation in the United States remains unattainable, but he has pushed the government to take the initiative.
Clayton said in an opinion article published by the Wall Street Journal on August 25 that, despite the debate, the government should first identify the advantages of cryptocurrencies to the financial system before implementing any regulation.
He mentioned advantages such as the capacity to facilitate instant payments and digital asset custody, and he urged the SEC to develop rules for the custody of tokenized assets.
According to the former chair, crypto participants are concerned that rules would likely result in investment losses or lost opportunities.
His comments come at a time when the SEC and its current head, Gary Gensler, have been criticized for allegedly limiting crypto industry growth. In this passage, crypto advocates are petitioning online for the resignation of Gensler.
The SEC has been criticized for clamping down on cryptocurrencies in the absence of clear laws. However, whenever the regulator publishes standards for tokenized assets, the government ‘must take after people who violate its laws,’ according to Clayton.
“Beginning there, we will quickly learn more. The following phase will be easy, and the opposing camps would face few obstacles,” he continued.
U.S. disposition to regulate crypto
In addition, Clayton added that the debate around the regulation of assets such as Bitcoin (BTC) is a result of the worldwide expansion of cryptocurrencies. In this instance, the previous chief regulator stated that the United States lacks publicly accessible licensing, transparency, and secondary market laws.
In an earlier opinion piece for the Wall Street Journal, Gensler said that securities regulations still apply to emerging technology such as cryptocurrency.
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