Digital Assets: Jay Clayton – SEC Hastens Slowly on Digital Assets

December 12, 2019 | Digital Assets, Regulations

Jay Clayton said in testimony to the Senate that the SEC was taking a measured approach to regulation of digital assets.

Jay Clayton was very positive on the prospects of distributed ledger technology, or the blockchain, in his testimony to the Senate. He also stated that the SEC was a “measured approach” to regulation of digital assets.

“As I have previously stated, I am optimistic that developments in distributed ledger technology can help facilitate capital formation, providing promising investment opportunities for both institutional and Main Street investors,” he said.

Remember, however, that his support for DLT is not unqualified. In March this year he wrote: “Regardless of the promise of distributed ledger technology, those who invest their hard-earned money in opportunities that fall within the scope of the federal securities laws deserve the full protections afforded under those laws.”

Actions to protect investors

In his testimony Clayton mentioned the actions taken by the SEC against bad actors and violators of the law. These included fraud, violation of provisions of securities laws and illegal ICOs. He also highlighted the unlawful operation of a digital asset trading platform. (This is perhaps about EtherDelta)

“With its expertise, Enforcement’s Cyber Unit continues to focus on, among other things, potential violations involving distributed ledger technology, cyber intrusions and hacking to obtain material, non-public information,” he said.

Clayton also drew attention to an emergency action by the SEC to block a public digital token offering that was unregistered but raised $1.7 billion from investors. Presumably, this was a veiled reference to Telegram.

SEC’s approach to digital assets

Overall, Clayton said the SEC had “taken  a measured, yet proactive regulatory approach that both fosters innovation and capital formation while protecting our investors and our markets.”

[Related Story: Digital Assets: The SEC Thaws; Approves Bitcoin Futures Fund ]

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Latest Alternative Investment News
Artificial Intelligence: AMD Takes On Rivals In The AI Chip Sweepstakes
December 7, 2023     Artificial Intelligence, News

Chipmaker AMD (NASDAQ: AMD) has unveiled a range of innovative AI solutions spanning from data centers to personal computers. The AMD Instinct MI300 Series features data center AI accelerators, while…
Digital Assets: Robinhood Debuts Crypto Trading On Its App In The EU
December 7, 2023     Digital Assets, FinTech, News

Robinhood (NASDAQ: HOOD) has launched its Crypto app in the European Union (EU), allowing eligible customers to engage in crypto trading with the added incentive of earning Bitcoin rewards. Customers…
FinTech: Samsung Electronics Ties With Mastercard’s Wallet Express
December 7, 2023     FinTech, News

Samsung Electronics (KRX: 005930) and Mastercard (NYSE: MA) have partnered to launch the Wallet Express program, offering banks and card issuers a cost-effective way to expand digital wallet offerings. Through…
Venture Capital: Revaia, Europe’s Biggest Female-Led VC Firm, Racks Up $160M For Second Fund
December 7, 2023     ESG and Sustainability, News, Venture Capital

Revaia, Europe’s largest female-founded venture capital firm, has successfully raised €150 million ($160 million) for its second fund, Revaia Growth II. The funding was secured from sovereign wealth funds, family…