US SEC Chairman Says a Proactive Crypto Regulatory Approach is In Place

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Jay-Clayton--us-senate

On December 10, in a lawmakers’ meeting, the Secretary of the US Securities and Exchange Commission Jay Clayton said that the country has a proactive and measured approach to crypto policies and regulations. 

In his speech before the Senate Committee on Banking, Housing, and Urban Affairs, Clayton stressed that the commission’s regulatory standards are crafted in such a way that they can deliver the best interests of institutional and retail investors alike. He also emphasized on the infinite potential and opportunities that Blockchain can bring in various markets, particularly in amassing capital. 

Later in his testimony, the US SEC chairman also reiterated his previous remarks on distributed ledger technology (DLT). He believes that DLT has the power to open doors of investment opportunities for Main Street and institutional investors by facilitating capital formation.

In the end, Clayton highlighted the commission’s stance on the pressing issues associated with financial innovations. He said that people shouldn’t worry as they have a proactive regulatory approach for cryptocurrencies and other emerging financial technologies in place. Furthermore, he assured that the safety of the markets and the investors wouldn’t be compromised as the United States is pursuing capital formation and innovation.   

However, while the chairman is trying to appeal to people to see the same perspective towards their approach to cryptocurrencies, all the more the US SEC is being attacked by critics. 

The commission is still chasing companies that have allegedly conducted illegal and unregistered initial coin offerings (ICOs) back in 2017. Two  of the most notable cases that have caught the attention of the crypto industry are the Canadian-based startup Kik and Telegram.

Due to the costly proceedings, the messaging app almost shut down its operations back in October. The court hearings are ongoing as of today. 

Telegram also faces ongoing court battles against the US SEC. A few weeks before the scheduled launch of Telegram Open Network, the commission took emergency action, claiming that the company has conducted an unregistered public token offering which accumulated around $1.7 billion from investors. The move forced Telegram to delay the launch. 

Such instances, with companies questioning the clarity, grounds and perimeter of the commission’s policies and regulations, continue to put the US SEC in a desperate position, surrounded with scrutiny. 

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