More regulation awaits Bitcoin in the area of payments, according to Jay Clayton, chairman of the US Securities and Exchange Commission (SEC).
US Securities and Exchange Commission (SEC) Chairman Jay Clayton renewed that Bitcoin is not a security in a CNBC broadcast he attended today. According to Clayton, Bitcoin is more of a payment mechanism and store of value.
According to the SEC Chairman, inefficiencies in traditional payment mechanisms available both domestically and internationally are driving Bitcoin to grow. However, the president warned that as Bitcoin becomes more popular, it could face more regulation as a payment method.
Clayton said, “I think we will see this maturation and I think there will be more regulation in the payments [for bitcoin] area.” said.
When asked why the SEC is not currently regulating Bitcoin, Clayton replied: “Let me explain it this way: We don’t regulate Bitcoin as a security. When people use crypto assets as securities to raise capital for a venture, the SEC regulates this. What happened during the ICO craze was the public offering of securities without registering them with the SEC. ”
Clayton further emphasized that the SEC determined that Bitcoin is not a security, but rather a payment mechanism and store of value.
Clayton’s words mean that government agencies such as the American tax agency IRS and FinCEN (Financial Crimes Prevention Network) can take the current methods of Bitcoin even further.
Clayton, who chaired the institution at a time when all Bitcoin ETFs coming to the SEC were rejected, will leave the post later this year. Clayton’s tenure, who decided to resign early, was due in June of next year.