The U.S. Security and Exchange Commission (SEC) has been very active in the country’s crypto space lately. Before the Senate Committee on Banking, Housing, and Urban Affairs, SEC Chairman Jay Clayton explained his agency’s stance on blockchain and cryptocurrency.
For Clayton, there is a need for a “measured yet proactive approach” when it comes to regulating the industry, according to Coin Telegraph. The SEC chairman believes that blockchain technology has the potential to tap into new opportunities for investors.
“As I have previously stated, I am optimistic that developments in distributed ledger technology can help facilitate capital formation, providing promising investment opportunities for both institutional and Main Street investors,” Clayton said.
But risks will always go hand in hand with opportunities. This has been proven true in the nascent crypto industry as well. One will invariably hear reports on ICO scams and Ponzi-like schemes involving digital currencies.
Given this scenario, the SEC just can’t throw caution to the wind. To maximize the benefits for the investing public while minimizing the risks involved, the agency has no choice but to be cautious but responsive to change.
“Overall, I believe we have taken a measured, yet proactive regulatory approach that both fosters innovation and capital formation while protecting our investors and our markets,” the SEC chairman explained.
Previously, the SEC and other regulatory agencies have been skeptical about Facebook’s cryptocurrency project Libra. But his comments about the cryptocurrency seem to suggest the SEC is now ready to tackle the issue head-on. “It’s here, we should not go around it,” was Clayton’s brief but telling comment on the issue.
In the past, the SEC has been adamantly rejecting Exchange-traded funds applications. However, the Commission has already passed a new rule that changes how it will regulate ETFs, AMBCrypto reported….