- SEC Chairman attributes Bitcoin rally to inefficiencies in the U.S. payment system.
- Clayton predicts accelerated growth for Bitcoin and increased regulation for the crypto industry.
In an interview for CNBC’s Squawk Box program, current U.S. Securities and Exchange Commission (SEC) Chairman Jay Clayton spoke about Bitcoin‘s performance. Clayton revealed that the inefficiencies in the traditional financial system, drive BTC’s price.
Clayton is a well know character in the crypto industry. The Chairman of the SEC is known for being tough on the regulations he has applied towards the crypto market. During his time at the regulatory body, hopes of approval of a Bitcoin ETF have faded even when it has come from renowned institutional players like the Winklevoss twins. However, Clayton acknowledged that Bitcoin is not a security.
In fact, the Commodity and Futures Trading Commission (CFTC) has classified Bitcoin as a “commodity” along with Ethereum. Clayton explained that Bitcoin is a payment network and a store of value. This last property has also being key in BTC recent rally. Many companies, such as Square and MicroStrategy, have invested in Bitcoin to hedge against dollar inflation. In that regard, Clayton said:
Our current payment mechanisms–have inefficiencies those inefficiencies are the things that are driving the rise of bitcoin. And we’re gonna see more of that. We’re gonna see this mature and we’re gonna see more regulation around the digital payment space.
Further clarifying the SEC’s criteria for classifying an asset as security, Clayton said this occurs when a cryptocurrency is used to raise capital. Then, the regulatory body can intervene, according to U.S. law:
And what was happening in the ICO craze was people were using ICOs and essentially making offerings of public securities without registering them with the SEC.
Clayton to step down, will Bitcoin ETFs Come?
As CNF has reported, a change in the SEC was expected by mid-year. Clayton was appointed as the Southern District Attorney in New York, after being nominated by the current president, Donald Trump. Therefore, he will be stepping down as SEC Chairman in December to fill that position.
In the crypto community, there is renewed hope that a Bitcoin ETF will be approved next year. This is considered a bullish development because of the ability it would have to inject fresh money into the crypto market. Jason “Yano” Yanowitz stated:
Just in: SEC Chairman Jay Clayton will be stepping down in December. This is a huge deal for crypto regulation. Clayton’s successor will ultimately approve or deny a Bitcoin ETF. Let’s hope the new chair understands innovation.
Meanwhile, Bitcoin is trading at $18,248 with gains of 4.21% in the last 24 hours. It’s expected that BTC will have one of its higher weekly close. In the 7-day chart, BTC recorded a 12.36% profit, and in the monthly chart, a 53.47% profit.