SEC chairman leaves a powerful message about technology and regulation at Consensus Invest

The year of 2018 has been marked by anxiety regarding crypto regulations. The suspense surrounding the approval of ETF funds and the future of ICO (unicial coin offerings) has certainly contributed to a steep drop in Bitcoin prices year. During Concensus Invest, this week, SEC chairman, Jay Clayton addressed some of the questions that most of us have been asking for answers.

In an interview with the host of Consensus, Naomi Brockwell, Jay Clayton sends an important message for all the technology users, investors and the developers in this space. He states that, in his opinion, “Blockchain is a powerful technology ”… …”but if you are going to raise money in America you need to follow our securities laws”. As he mentioned once addressed, … “the defense of not knowing is no longer really viable.” 

The aim of the interview was certainly to bring some clarity. Here is what you need to know to help comply with regulations:

1. The United States Security Exchange Commission chairman, clarified that using the term TOKEN does not exclude an enterprise, project or ICO from regulations. Token is a new type of security because it enables to invest in an enterprise that you do not control yourself, that is not an actual product of your work. The purchase of a token is a way you can participate in the profit of an enterprise.

2.  The role of the SEC and ETF is to enforce the security laws with the respect with fairness to its investors while at the same time encourage innovation, as mentioned by Glenn Hutchins, co-founder of Silver Lake Partners. He believes those two goals are not contradictory since they work so well in the stock market. Security laws were created with the beginnings of the stock exchange to protect investors in the event the enterprise doesn’t say the truth, or is not transparent enough. Processes of auditing financial statements and remedies can then be implemented.

3. To encourage continuous growth in the industry It is important for all Crypto enterprises follow SEC and ETF regulations. Some guidelines mentioned in the interview are: 1. Banking laws such as anti-money laundering, know your costumer, terrors financing; 2.Costumer fairness laws and; 3. ETF Exchange Traded Fund rules and guidelines

4. Jay Clayton also affirmed, on speech, that SEC will not support an ETF until market manipulation is addressed.

Jay Clayton states that SEC will most likely increase its presence in Crypto events to increase awareness of regulatory laws. The “I did not know excuse” is no longer viable. The interview finally ends with a personal question, when Naomi asks Clayton is he worries about decentralization taking over and Sec losing control… an odd question perhaps that is answered with a simple “NO”.

Check out the interview below and check out Naomi Brockwell YouTube channel for fresh crypto news.