Former chairman of the US Securities and Exchange Commission (SEC) Jay Clayton said that even if bitcoin is not considered a security, in the long term it will be regulated.
The commission did not consider bitcoin as a security even before Clayton took over as chairman of the SEC, and the regulator still adheres to the same position. However, this does not mean that Bitcoin will not be controlled, Clayton said. Given that cryptocurrencies are in great demand, and even banks are starting to work with bitcoin, in the near future regulators will develop appropriate regulation of cryptoassets both at the state and international levels. Moreover, bitcoin can be controlled indirectly, for example, by banks and tax authorities.
“Despite the fact that bitcoin is not considered a security, the regulators will not bypass it. Sooner or later, control over this digital currency will increase, ”said the former SEC chairman.
Clayton’s comments followed amid a lawsuit between Ripple and the SEC. The regulator calls XRP cryptocurrency a security, and Ripple carried out their sale illegally, in violation of US law. Therefore, Ripple asks the department to reconsider its attitude towards bitcoin and ether. Specifically, Ripple requires the court to order the SEC to argue why BTC and ETH are not classified as securities for an extended period of time, while XRP is classified as such. The company says XRP should be considered a virtual currency similar to Bitcoin and Ether. This lawsuit is taking its toll on XRP as many of the leading cryptocurrency exchanges, including Coinbase, Binance, and Kraken, have stopped trading the cryptocurrency.
Recall that Clayton took over as chairman of the SEC in May 2017 and resigned at the end of last year. Clayton has previously advocated tighter regulation of bitcoin to protect traders who trade on large exchanges.
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