This week, Jay Clayton, the Chairman of the United States Securities and Exchange Commission, said that he is optimistic about the innovation in the DLT space. He believes that this emerging technology is going to facilitate capital formation. He made this statement while speaking in a US Senate Committee. The meeting was about Urban Affairs, Banking, and Housing. The content of the meeting that was published on the SEC website showed Clayton’s opinion about the industry.
Jay Clayton Bullish About DLT
Clayton believes that decentralized ledger technology will offer retail and institutional investors amazing investment opportunities. He talked about many aspects of the regulatory oversight the SEC has been providing over the last fiscal year. He also talked about their policy agenda and a strategic plan for 2019.
While talking about agenda’s, Clayton emphasized how the agency is paying serious attention to DLT and ICOs. Regarding these technologies, he said that he is optimistic. He said that this emerging sector is full of opportunities and that the SEC is working on initiatives that will be aimed at fostering innovation and protecting investors. This will all be part of a balanced regulatory approach.
Clayton said that the corporation Finance director, Bill Hinman will provide guidance on how digital assets will be evaluated and will determine which cryptocurrencies should be tagged securities. The associate director, Valerie A. Szczepanik, has also been appointed to work in the same division. He would serve as a senior advisor for innovation and digital assets.
As part of the SEC’s effort to internally regulate cryptocurrencies, Clayton said that they have created a dedicated Strategic Hub for Financial Technology and Innovation. This shows that the SEC is welcoming those who are willing to raise capital and innovate as long as it is in accordance with the law.
Clayton also made reference to the SEC’s attempts to meet with other regulators and coordinate inter-agency oversight. They also intend to proactively issue statements to the public about cryptocurrencies and ICOs.
In conclusion, Clayton talked about the unfortunate situation caused by bad actors who prey on unsuspecting investors who are excited about ICOs and cryptocurrencies. These bad actors commit fraud and have soiled the reputation of the industry.
Earlier in the week, Clayton said that initial coin offerings can be effective if they are properly regulated with security laws. This will ensure that participants within the ICO realm get the same degree of protection investors in fixed income and equities market get.