SEC Chairman Jay Clayton appeared on CNBC’s Squawk Box on Nov. 19, 2020, to remark that the current inefficiencies of payment systems are driving the Bitcoin price rally. Even though Jay Clayton is not a staunch supporter of Bitcoin, his latest interview makes him appear bullish otherwise. Jay Clayton, who will step down from his Chairman role by the end of the year, also confirmed that the SEC believes that Bitcoin is not a security but a method of payment and store of value.
On SEC Not Regulating Cryptocurrencies
Squawk Box host Andrew Ross Sorkin asked why SEC does not regulate Bitcoin and other cryptocurrencies to which Clayton responded:
“Well, let’s put it this way: We do not regulate Bitcoin as a security. When people use crypto assets as securities to raise capital for a venture, the SEC regulates that. And what was happening in the ICO craze was people were using ICOs and essentially making public offerings of securities without registering them with the SEC.”
In fact, Clayton was first among the SEC members to issue warnings on the dangers involved in an ICO investment during 2017. He wanted to make people aware that ICO investment products are usually regarded as securities offerings and are subjected to the regulations.
Bitcoin to Continue Growing: Clayton
Clayton, however, believes that Bitcoin will continue growing while regulations centered around it might evolve further:
“What we are seeing is that our current payment mechanisms, domestically and internationally, have inefficiencies. Those inefficiencies are the things that are driving the rise of Bitcoin. And we’re gonna see more of that. We’re gonna see this mature and we’re gonna see more regulation around the digital payment space.”
Although Clayton is not completely against Bitcoin and other cryptocurrencies, he did regularly emphasized the risks of an average trader investing in a Bitcoin ETF.