SEC chairman Jay Clayton: Bitcoin isn't like stocks or bonds

06 Jun, 2019
by Richard Allen
Opinion
SEC chairman Jay Clayton: Bitcoin isn't like stocks or bonds

SEC Chairman Jay Clayton recently joined CNBC’s Squawk Box where he offered the regulator’s latest take on Bitcoin. Speaking about the SEC's apparent resistance in providing clarity on Bitcoin, Clayton stated that they’re “engaging on this” but there are few things the SEC needs to “feel comfortable with” first. 

The first thing they have to be comfortable with is custody, admitting they see cryptocurrencies more like stocks than currencies. Clayton then describes how retail investors would look at Bitcoin and be fooled into thinking it trades like a stock or a bond.

“We have sophisticated rules and surveillance to ensure that people are not manipulating the stock market. Those cryptocurrency markets by and large do not have that.”

The lack of rules is another factor that’s impacting the SEC’s outlook. Many in the crypto space are advocating for regulation, and it seems as if Clayton agrees. He said: “we’re working hard to see if we can get there. But I’m not just going to flip a switch and say ‘this is just like stocks and bonds’ because it's not.”

Recently, the SEC announced it’s suing Kik interactive for $100 million. the lawsuit is centered around the company’s cryptocurrency, Kin Token. the token has not been registered with the SEC and the regulator feels as if Kik has violated investor protection laws. In response, Kik has raised over $4 million to fight the SEC’s lawsuit.

Follow Chepicap now on Twitter, YouTubeTelegram and Facebook!

BTC RETRACEMENT! This is what's next for Bitcoin! Subscribe to the Chepicap YouTube Channel for more videos!

Poll

Will the SEC get to crypto regulation this year?

(51 votes)

Add a comment

Check out the latest news

You will be logged out and redirected to the homepage