Wednesday, April 24, 2019

SEC Chairman Believes Cryptocurrencies Should Fit Into Our Rules, Not Change Them

The Chairman of the Stock Exchange Commission has expressed his opinion on blockchain technology and Cryptocurrency, stating categorically that the technology should find a way to fit into the rules and regulation of the SEC and that the commission will not bend its rule just because the industry is still new in the marketplace.

A Personal Opinion

The Chairman of the SEC, Jay Clayton at the inaugural TimesTalks event organized by the New York Times last week stated that his position on Blockchain technology and Cryptocurrency were entirely personal opinion and not the official stance of the regulatory agency.

To give some perspective on how far cryptocurrencies and blockchain technology have come regarding the impact on today’s narrative about the future of finance, the SEC boss noted that in March 2017, during his confirmation hearing, the new technology was completely overlooked.

“If you search the hearing transcript and all of the questions, you won’t find blockchain, distributed ledger technology, Bitcoin, Ethereum, not a single question in March 2017.”

Clayton further maintained that the SEC has sound rules that have stood the test of water and they should not be changed to adapt to technology, just because it’s new in the marketplace

“Technology ought to be able to fit into our rules. And I think this technology has incredible promise for adding efficiency to our marketplace, but I’m not going to change the investor-protection aspects of those offering rules or those trading rules just because there’s a new technology.”

On the question of whether Bitcoin is a security or not, Clayton said:

“It’s widely distributed. It was not controlled by a single entity or other people. It’s used as a medium of exchange. You are not looking to the efforts of others to increase your return. So it looks much more like a currency than a security.”

The Currency for the Future

Also at the event was the North American managing director at Accenture Wynn Davies, who is of the opinion that cryptocurrencies will be the future currency and should not be ignored. He further praised the blockchain technology as one of the most innovative and success driven technologies ever made to aid in the process of conducting business transactions.

Regulation is one of the basic challenges facing the blockchain and cryptocurrency industry; the topic is still one of the fiercely debated topics in the crypto-space and one that is not likely to go away at least in the meantime.

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