What Did The SEC Chairman’s Recent CoinDesk ”Consensus: Invest” Speech Mean?

What Did The SEC Chairman’s Recent CoinDesk ”Consensus Invest” Speech Mean

CoinDesk recently held its ”Consensus: Invest” event in New York. However, perhaps somewhat surprisingly, Jay Clayton – chairman of the US Securities and Exchange Commission – were among those speaking.

SEC chairman Jay Clayton gave some new hints

Although Clayton reiterated a lot of what he had previously expressed in other interviews, he also gave some new hints. Subsequently, a set of cryptocurrency law experts from CoinDesk Live went on to dissect what Clayton had said.

First and foremost, the experts concluded that Clayton’s comments seemed to suggest that a Bitcoin ETF might still be some time away. The group of experts referenced third-party custody, as well as the possibility of market manipulation, as two uncertain factors.

Is custody needed if assets are on the blockchain?

Nevertheless, the group of experts also questioned why this was the case. ”I think there’s a real question as to whether a custodian is needed if all the assets are actually sitting on a blockchain,” Caitlin Long (from the Wyoming Blockchain Coalition) noted.

In addition to this, Clayton mentioned that he does not believe the current cryptocurrency exchanges are capable of preventing price manipulation. The group of experts, however, argued that Clayton’s comments could suggest that an attempt to introduce Bitcoin on a regulated exchange may be coming.

Moreover, Clayton highlighted anti-money laundering protections as something that would need to be introduced more broadly for cryptocurrency trading. Nevertheless, the panel of experts said that this could potentially lead to increased corporatization.

SEC: ”Those we find may get another deal”

Clayton also urged ICOs that raised money in 2017 and 2018 to contact the SEC as soon as possible. ”Those that come see us may get one deal, those we come find may get another,” Clayton warned. The experts agreed that ICO startups should get in touch with the regulator to prevent future repercussions.

Furthermore, Clayton stated that he was open to the notion of startups working in the cryptocurrency industry. However, the SEC has not yet begun issuing the so-called ”no-action” letters that are widely expected. Long noted that this meant that the ”US is already behind.”

In addition, the SEC chairman also argued that the SEC would be willing to assist cryptocurrency startups with regulatory compliance. However, it should be noted that this is substantially more difficult and costly than Clayton made it appear.

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