SEC Chairman Gives Positive Outlook On Crypto to Senate Banking Committee... But Should We Trust Him?

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Video via CSPAN

SEC Chairman Jay Clayton sounded generally positive when it comes to the future of cryptocurrency "I am optimistic that developments in distributed ledger technology can help facilitate capital formation, providing promising investment opportunities for both institutional and Main Street investors”.

He also repeated his stance that he believes a balance between regulation and innovation must be found, saying: "Overall, I believe we have taken a measured, yet proactive regulatory approach that both fosters innovation and capital formation while protecting our investors and our markets."

But if we know anything about government officials (of any nation), talk is cheap, and the SEC has taken surprising actions in some cases. For example, companies like Kik for launching an ICO, accusing them of foul play for raising and losing less investor money than companies like Uber, who have their blessing.

It's a magical world where a blockchain company losing $3 million must be a 'scam' - but a company listed on the stock market can lose $25 million and it's just 'a rough year'.

Earlier this year we published an article that made its way around Washington DC, in it our chief editor exposed how even some people within the SEC think they shouldn't have oversight over cryptocurrency.  Laws around 'securities' simply don't fit what cryptocurrencies are.

A "win" here isn't the head of the SEC saying something pro-crypto, it's the SEC being removed from the picture entirely.

Then an agency like the CFTC could be given oversight, scams and lying to investors remains illegal, and cryptocurrencies become legally classified the same as gold or silver (a commodity).

A concept being talked about behind closed doors with policy makers more than many are aware of, according to our sources within industry lobbying groups.

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Author: Justin Derbek
New York News Desk


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