The chairman of the US Securities and Exchange Commission (SEC) has explained how the US government regulates cryptocurrency. He calls bitcoin a store of value and notes that the rise is caused by the inefficiency of the current payment system.
How Bitcoin Is Regulated In The US
SEC Chairman Jay Clayton explained how the US government regulates bitcoin during an interview with CNBC Squawk Box on Thursday.
He started by responding to a comment by JPMorgan CEO Jamie Dimon about bitcoin regulation. Dimon said he was not in favor of bitcoin because, in his experience, the government can “arrange anything they want when they feel like it.” Considering bitcoin’s current market cap of about $ 340 billion, Dimon claimed that “as it gets bigger and bigger and bigger, it’s going to be regulated.”
Clayton described that to the SEC:
We determined that bitcoin was not a security, but rather a payment mechanism and a store of value.
“We have not regulated bitcoin as a security,” the SEC chairman confirmed. He added that during the initial coin offering (ICO) craze, “people were using ICOs and essentially disclosing securities without registering them with the SEC,” reiterating that “when people are using crypto assets as securities to raise capital for a company, the SEC takes care of that. “
Regarding bitcoin as a payment mechanism, the chairman stressed:
The government regulates payments and what we are seeing is that our current payment mechanisms, both national and international, are showing inefficiencies, those inefficiencies are the things driving the rise of bitcoin.
“We’re going to see more of that … we’re going to see this mature and we’re going to see more regulation around the payment space,” the SEC chairman noted.
Clayton confirmed his plans to complete his tenure at the end of the year on Nov. 16 after serving with the SEC for more than three and a half years. “Chairman Clayton was sworn in on May 4, 2017 and will leave the SEC as one of the longest-serving chairs,” the SEC wrote.
What do you think of US crypto regulation and Clayton’s opinion? Let us know in the comments below.
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