Former SEC Chairman Fears Regulation Will Kill Crypto Industry

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The former American official believes that the government first needs to study new technologies, use them, and only then introduce restrictions.

Former Chairman of the Securities Commissionand US Exchanges (SEC), Jay Clayton admitted that unanimity on the issue of regulation of cryptocurrencies in the United States seems elusive for the parties involved. But he called on the government to take the first step towards:

“To move forward, the United States needsmost notably, take advantage of the efficiencies provided by tokenizing well-known services such as payments and storing assets in digital form. The President's task force, led by Treasury officials, should move forward with regulations for stablecoins, defining the characteristics that make stablecoins a means payment (akin to a money transfer) rather than a security or commodity.”

According to Clayton, crypto market participantsfear that regulation will likely lead to losses for investors or missed opportunities. Once the regulator promulgates rules for tokenized assets, the government should prosecute those who break the laws, so for now, in the absence of clear regulation, the crypto industry may feel freer .

In addition, Clayton said, disagreements onregarding the regulation of assets such as Bitcoin (BTC) are associated with the global growth of cryptocurrencies. In the United States there are no publicly available requirements for licensing, mandatory disclosure of information and rules for secondary trading throughout the entire market, the ex-government official concluded.

Earlier, crypto enthusiast Mark Cuban criticized
SEC for the lack of clear provisions to regulate the industry over the past many years.