Jay Clayton: U.S SEC Senate Testimony Positive on Blockchain Investment Opportunities

The U.S. SEC chairman, Jay Clayton, revealed in a testimony on Tuesday, December 11, 2018, that he is confident that establishments in blockchain technology will help elevate capital formation.

While addressing the U.S. Senate Committee on Banking, Urban Affairs and Housing, which was officially put on the SEC website, chairman Jay said that blockchain technology provides inspiring investment opportunities to both retail and institutional investors. 

Jay’s testimony traversed different looks of the U.S. Securities and Exchange Commission’s oversight. It included its regulatory & policy docket for the last financial year plus its fresh generalship plan and next year’s short-term target. 

Within this circumstance, chairman Jay stressed and underscored the agency was targeting a lot of attention and resources on ICOs, blockchain and cryptos. 

How Digital Asset can be Considered a Security 

According to what Jay outlined, optimism about the investment opportunities offered by the nascent industry and a variety of the SEC’s initiatives which focus to cultivate innovation and safeguard investors all in a well-balanced regulatory approach. 

These have key guidance from Bill Hinman, SEC’s Corporation Finance director, on how best a crypto can be regarded a security in accordance with the U.S. federal law, and also the designation of Valerie Szczepanik – Associate Director, to work as a dedicated senior advisor for crypto and innovation.   

In its internal digital asset regulatory coordination endeavours, he said the SEC’s formation of set-apart Strategic Hub for Innovation & Financial Tech in October, 2018, which he depicted as an indication the SEC’s “door is wide open to all those people and institutions looking to innovate and collect capital in line with the set laws. 

Taking Advantage of Investors 

Chairman Clayton cited the agency’s trial to coordinate inter-agency management with some other major regulators, and to anticipatory matter ongoing public statements regarding crypto and ICOs, in November 2018.   

Clayton concluded the discussion mentioning the ruinous case of illicit players that:   

“Prey on investors’ excitement about cryptocurrencies and ICOs to commit fraud or other violations of the federal securities laws.”   

However, earlier this week, chairman Clayton commented that initial coin offerings can be highly efficient, but need proper regulation and acquiescence with SEC laws to guarantee they provide partakers with the same level of investor protection as in traditional equities & major fixed income markets.