KANALCOIN NEWS – The United States Securities and Exchange Commission or SEC claims to have a special way of managing and regulating cryptocurrencies, especially Bitcoin. This is based on the SEC’s assumption that Bitcoin is not a stock.
The chairman of the United States Securities and Exchange Commission (SEC), Jay Clayton, recently presented the SEC’s views on the push to regulate and manage Bitcoin in the United States. This was conveyed by Clayton in an interview with CNBC Squawk Box, Thursday (19/11/2020).
This view of the SEC regulating Bitcoin is actually based on comments made by JPMorgan’s CEO, Jamie Dimon, regarding Bitcoin regulation. Dimon said that he deliberately did not use Bitcoin.
That’s because Dimon believes that the government will sooner or later regulate Bitcoin. In fact, Dimon believed that governments could regulate whatever they wanted when they wanted it.
What’s more, the value of Bitcoin’s market capitalization has now touched a value of 340 billion United States dollars. Thus, Dimon believes that the greater the value of Bitcoin, the more likely Bitcoin will be regulated by the government.
However, Clayton, as chairman of the SEC, firmly denied Dimon’s statement. Until recently, the SEC did not officially regulate Bitcoin because they did not consider Bitcoin a security. Even if the value of Bitcoin gets higher, the SEC will not regulate Bitcoin because Bitcoin is not a security.
“We decided that Bitcoin is not a security, it is more a payment mechanism and a store of value,” said Clayton.
“We do not regulate Bitcoin as a security. People use ICOs and basically make a public offering of securities without registering them with the SEC,” Clayton added.
Nevertheless, Clayton did not rule out the possibility of regulating Bitcoin if Bitcoin is placed as a security asset to raise capital for a particular business.
“When people use crypto assets as securities to raise capital for a business, the SEC regulates that,” said Clayton.
Clayton claims that the growth of Bitcoin among the public today is due to the inefficiencies that exist in the payment system that is regulated by the government. Therefore, Clayton will strive to make regulations related to payments more efficient.
“Governments do regulate payments and what we’re seeing is that our current payment mechanisms, domestically and internationally, have inefficiencies, those inefficiencies are the things that are driving the rise of Bitcoin,” Clayton said.
“We’re going to see a lot more of that … we’re going to be looking at this very carefully and we’re going to be making more regulations around the payments area,” Clayton added.
Clayton himself will soon step down from his post as chairman of the SEC at the end of this year. This was conveyed by Clayton on November 16.
Since being sworn in on May 4, 2017, Clayton has become the longest serving chairman of the SEC, namely three and a half years, in existing history.