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
FinTech: Lloyds To Acquire Stake In Loyalty App Bink
January 4, 2022     FinTech, News

Lloyds Banking Group (LON: LLOY), Britain’s biggest mortgage provider, will acquire a minority stake in loyalty app Bink, according to a report by Sky News for an undisclosed amount that…
Digital Assets: Coinbase CEO Armstrong Said To Have Splurged $133M On Home In LA
January 4, 2022     Digital Assets, News, Real Estate

An iconic property in Bel Air, Los Angeles, designed by internationally acclaimed English architect John Pawson changed hands last month for $133 million and the buyer was Coinbase (NASDAQ: COIN)…
Alternative Investments/ESG: VegTech Invest Launches Plant-Based Innovation & Climate ETF

VegTech Invest advisory has launched the VegTech Plant-based Innovation & Climate ETF (Ticker: EATV), its first financial product. The ETF offers exposure to publicly traded companies actively innovating with plants…超·世界.png
Venture Capital: Chinese AI Startup Parametrix Raises $100M, Turns Unicorn
January 4, 2022     Artificial Intelligence, News, Venture Capital

Chinese AI company has raised $100 million in a Series B round led by Sequoia China and joined by existing investors 5Y Capital and Gaorong Capital. Though the valuation…