Jay Clayton, former chairman of the US Securities and Exchange Commission (SEC), says the successful adoption of cryptocurrencies is forcing regulators to create policies to support the technology.
In a new interview on CNBC television, Clayton argues that regulators must come to terms with the fact that digital assets like stablecoins are here to stay because of the major benefits they offer.
“One of the fascinating things about crypto is that it didn’t come through the institutional markets, where most of the development of financial products takes place. Most of the world’s financial product development takes place in the US, in our institutional markets. Crypto, digital assets, really came global and at the retail level. So the development was something very new for, I would say, regulators around the world, given the way it came about. And many old lessons have been relearned and new lessons learned.
One of the old lessons that was relearned and learned the hard way was that when you raise money from the general public in America, it is an incredibly highly regulated transaction. We protect the public from securities offerings in an incredibly rigorous manner…
On the other hand, I think regulators have had to learn that this technology could be a step change, and in many ways it has become a step change for existing processes and some new processes, including what I would say is the rise of stablecoin , which is one of the most remarkable developments in the financial world of the past decade.”
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