Securities and Exchange Commission (SEC) chairman Jay Clayton, who oversaw the rejection of nine bitcoin ETFs during his tenure, told CNBC that “shortcomings” in current payment systems continue to drive Bitcoin’s popularity.

Clayton appeared on CNBC’s Squawk Box yesterday, and the agency’s official assessment confirmed that Bitcoin is not a security, but a payment mechanism and value store, and will withdraw by the end of the year.

The chairman of the board has received widespread criticism from the bitcoin community for his emphasis on bitcoin and cryptocurrencies. During his years as head of the SEC, Clayton has in principle never been a strong opponent of Bitcoin, but he regularly expressed concern that ordinary investors may take unnecessary risks when investing in Bitcoin ETFs.

This risk stems from the Securities and Exchange Commission’s (SEC) perspective that the largely unregulated nature of some bitcoin exchanges makes it extremely easy to manipulate the bitcoin price. Since Clayton became SEC captain, some bitcoin advocates believe that the chances of a Bitcoin ETF being approved are greater than ever.

Clayton believes that Bitcoin will continue to grow as the rules evolve.

We think our current payment schemes at home and abroad are ineffective. This inefficiency is the driving force behind Bitcoin’s growth … and we’ll see more. We will see this mature, and we will see more regulation of digital payments.
Clayton was the first member of the Securities and Exchange Commission to issue a warning about potential risks in ICO investments during ICO Mania 2017, reminding the public that these products are generally considered securities offerings and are subject to applicable regulations.

“We did not regulate Bitcoin as security,” Clayton said, explaining that BTC was more of a “payment and value storage mechanism” than a security.

When people use cryptocurrency as a security to raise capital for an institution, the Securities and Exchange Commission (SEC) regulates this. And during the ICO frenzy, people used ICOs and presented mostly public securities without registering with the Securities and Exchange Commission.
Clayton was named chairman of the US Securities and Exchange Commission by President Donald Trump in January 2017 and is stepping down as one of the agency’s longest-serving executives. In June 2020, Trump appointed Clayton to replace the outgoing Attorney General for the Southern District of New York, a position he said he applied for out of a strong desire to pursue a career in the public service.

Source: CoinTelegraph