Former chairman of the US Securities and Exchange Commission Jay Clayton said that Bitcoin was not considered a security for a long time.

But on March 31, in CNBC’s Squawk Box, Clayton warned that his unprotected status still does not protect him from new regulations that he warned could come soon.

Host Andrew Ross Sorkin noted that under Clayton’s oversight, the SEC has not taken a stance on Bitcoin regulation. Clayton responded to this because it was announced that the asset was not a guarantee until he took over as chairman of the board of directors.

“It was decided that Bitcoin is not a security until I joined the SEC. Therefore, the SEC’s jurisdiction over Bitcoin was somewhat indirect. ”
Clayton has remained in the industry since leaving the SEC in December 2020 and is currently advising One River Asset Management on cryptocurrencies.

While he claims to have no personal knowledge of the new laws that have been passed during his tenure as chairman of the Securities and Exchange Commission, he believes the legal framework will be shaken.

“Where digital assets […] will eventually emerge will depend in part on regulation – locally and internationally – and I expect, as I am now as a citizen, that this regulation will work directly in this area. and indirectly, if they are kept in banks “Guarantee accounts, taxes and the like. We will see the development of this regulatory framework. ”
Clayton’s comments came just a week after billionaire hedge fund manager Ray Dalio warned that the United States could ban Bitcoin, as it did with gold in the 1930s.

His comments on Bitcoin’s unsecured status are also interesting in light of Ripple’s call to the SEC to obtain documents from the agency to pinpoint exactly how he came to the conclusion that Bitcoin and Ethereum are not securities.

The company and its supporters have repeatedly stated that XRP is unsafe, but the SEC believes it is significantly different because it is more centralized. Former Securities and Exchange Commission attorney Mark Bowers told Cointelegraph that the agency is carrying out a grave breach in a case against Ripple and its executives.

Source: CoinTelegraph