Jay Clayton believes in the possibility of making ICOs more effective and efficient through the offering of greater security. Jay Clayton stated this at the end of the year speech published on the SEC’s site.
Making ICOs More Effective Through Appropriate Security
Jay Clayton, US SEC chief at the end of the year speech evaluating the successes and goals of the securities and exchange commission for 2018 and the goals of the year 2019 respectively stated the plan of the commission for Cryptocurrency and blockchain technology for the year 2019 also.
Clayton noted in the speech that an aspect the commission was committed to in the year 2018 is the aspect of the distributed ledger technology, digital assets, and the initial coin offering and he expects the trend to continue in 2019.
The continuation of this trend is to be seen in attending to the concerns that have been raised relating to digital assets and ICOs market and how it is being operated. Clayton noted that the crypto space is bedeviled with the absence of security for investors about the traditional equities and fixed income market with correspondingly greater opportunities for fraud and manipulations.
Meanwhile, Clayton affirmed his confidence in the crypto market by stating that he believes that ICOs can be effective for entrepreneurs and others to raise capital. However, he stated that “the novel technological nature of an ICO does not change the fundamental point that, when a security is being offered, our securities laws must be followed.”
Also, Clayton noted the recent SEC effort in neutralizing and better coordinate the staff’s work on the issues. This includes the formation of a new Strategic Hub for Innovation and Financial Technology (“FinHub”) within the agency. Representatives from across the Commission staff this, the FinHub serves as a public resource for fintech-related issues at the SEC and the commission is also committed to innovation as well as raising capital in accordance with the law.
US SEC and Cryptocurrency Market In 2018
The Cryptocurrency has been in duress from the bearish trend that has been Prevalent since the beginning of 2018. This circumstance has made enthusiasts believe that the recovery of the crypto market is dependent on the approval of the Bitcoin ETF by the SEC.
However, many applications for ETF has seen rejection due to the volatility of the crypto market and the absence of appropriate security. Making Appropriate regulations available in 2019 is set to affect the crypto space positively.