Regulators in the United States believe they have adopted a “measured yet proactive” approach to regulating cryptocurrency that supports both retail and institutional investors.
On December 10, Jay Clayton U.S. President of Securities and Exchange Commission (SEC) , who revised the official policy for policymakers give his official opinion.
In statements to the Senate Committee on Banking, Housing and Urban Development, Clayton discussed the ability of blockchain technology to support market participants in capital collection.
“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.
“Overall, I believe we have taken a measured, yet proactive regulatory approach that both fosters innovation and capital formation while protecting our investors and our markets.” layton conclude that he supported the general tactic of the SEC on disruptive financial innovation.
Complicated legal proceedings by ICO
While Clayton has sought to take a balanced view of cryptocurrencies, especially in the midst of this year’s intensive scrutiny by Washington, the SEC has been fired for its policies more broadly. Previously, there were enforcement actions against certain companies that made initial coin offerings (ICOs) continue in 2017. In October, one legal battle involving Kik’s Canadian messaging app nearly saw the company shut down completely.
Crowdfund Insider cited Clayton in a Q&A session after his testimony as defining the regulatory scenario as complex. On the issue of cryptocurrencies, especially the unlaunched Libra virtual currency from Facebook, he allegedly said, “It’s here, we shouldn’t go around it.” Additionally, this month, Clayton met numerous influential regulators in penning a U.S. government study which discussed potential risks raised by broader stablecoins adoption.
Photo Credit: Financial Times.
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