Ex-Chairman of the US Securities and Exchange Commission Jay Clayton said that Bitcoin has not been rated collateral for a long time.
But speaking on CNBC’s Squawk Box March 31, Clayton warned that his insecure situation still wasn’t protecting him from the new rules he was warning about soon.
Moderator Andrew Ross Sorkin indicated that the SEC has not taken a position on Bitcoin regulation under Clayton’s oversight. Clayton replied that this was due to the fact that the original was declared unsecured even before he took over as head of the regulator.
“Bitcoin was not designated as collateral until I joined the SEC. Therefore, the SEC’s jurisdiction over Bitcoin was somewhat indirect.”
Clayton has been in the industry since leaving the SEC in December 2020, and is currently providing advice to One River Asset Management on cryptocurrencies.
While he admits he has no idea about the new laws that were passed during his tenure as chairman of the Securities and Exchange Commission, he believes the regulatory environment has been shaken.
“As digital assets will ultimately depend […] in part on regulation – both nationally and internationally – and I expect, and now I say as a citizen, this regulation will be implemented in this area directly and indirectly around this subject. By the way they are stored in banks. , In security accounts, in taxes, etc. We will see the evolution of this regulatory environment. ”
Clayton’s comments came just a week after billionaire hedge fund manager Ray Dalio warned that the United States could completely ban Bitcoin, as it did with gold in the 1930s.
His comments on the status of unsecured bitcoins are also interesting in light of Ripple’s petitions to the SEC to obtain documents from the agency to determine how Bitcoin and Ethereum were not securities.
The company and its backers have repeatedly stated that XRP is not a security, but the SEC believes this is significantly different due to the fact that it is centralized. Former Securities and Exchange Commission attorney Mark Bowers told Cointelegraph that the agency has made significant progress in the case against Ripple and its executives.