Jay Clayton, the former chairman of the Securities and Exchange Commission, has joined $2 billion Bitcoin custodian Fireblocks as an advisor.
This would be the former SEC chief’s second crypto venture since he already joined One River Asset Management Firm in March. Additionally, the SEC had approved the One River Asset Management firm’s application for a carbon-neutral Bitcoin exchange-traded fund.
Clayton would be responsible for mitigating legislative risks and assisting the firm in resolving regulatory problems in the United States and internationally. Fireblocks is a young blockchain startup formed in 2019. However, given that it has previously functioned as a custodian for over a trillion dollars’ worth of assets since its founding, its experience in the crypto space is extremely commendable.
Clayton has joined a lengthy list of former regulators who have joined the private sector, particularly cryptocurrency startups, to assist them in navigating regulatory uncertainty. Binance is presently the market leader in terms of hiring former regulators or government officials. The cryptocurrency exchange has hired a number of former CFTC officials.
Many Are Astounded by Clayton’s Crypto Involvement
The crypto community viewed Jay Clayton’s stint as SEC chairman as regressive, as the SEC rejected all Bitcoin ETF applications during his tenure. Thus, when he joined One River and the firm filed for the BTC ETF, it appeared to many in the crypto space to be fairly anti-climatic.
Clayton also endorsed recent comments made by the current SEC chairman regarding the crypto market’s security status for many coins. He also stated that he is aware that the company he is joining may have many crypto-assets that qualify as securities.
“I know that [Fireblocks CEO Michael Shaulov] and his colleagues are committed to regulatory compliance,” he says. “So to the extent that the SEC determines that certain digital assets that are trading on platforms are in fact securities and should be regulated accordingly, I certainly understand that.”
He commended the SEC’s efforts and explained that those who work for the commission should not have grudges because they are required to follow certain rules and regulations. He clarified,
“What people must understand is that the Commission’s authority is defined by statute and rules established by the Commission,” Clayton continues. “The Commission’s women and men do an excellent job of mapping those obligations to the advent of digital securities offerings and informing the public that digital securities offerings and trading must adhere to the same rules as traditional paper-based securities trading, which has largely become digital in and of itself in many functions.”
Also Read: JPMorgan Chase Closed The Bank Accounts Of A Bitcoin Mining Company
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