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The chairman of the US Securities and Exchange Commission (SEC) explained how the US government is regulating the cryptocurrency. He calls bitcoin a store of value, noting that its increase is driven by the inefficiencies of the current payment system.
How Bitcoin is regulated in the United States
SEC President Jay Clayton explained how the U.S. government is regulating bitcoin during an interview with CNBC Squawk Box on Thursday.
He began by responding to a comment made by JPMorgan CEO Jamie Dimon regarding bitcoin regulation. Dimon said he was not a bitcoin supporter because in his experience, the government “can regulate what they want when they want to.” Given bitcoin’s current market capitalization of around $ 340 billion, Dimon said that “If it gets bigger and bigger, it will be regulated.”
Clayton described it to the SEC:
We established that bitcoin was not a security, it was much more of a payment mechanism and a store of value.
“We haven’t regulated bitcoin as a security,” the SEC chairman said. He added that during the initial coin offering (ICO) craze, “people used ICOs and essentially made public offerings of securities without registering them with the SEC,” reiterating that “When people use cryptocurrencies as securities to raise capital for a business, the SEC regulates it. “
Regarding bitcoin as a payment mechanism, the president pointed out:
The government regulates payments and what we are seeing is that our current payment mechanisms, nationally and internationally, have inefficiencies, those inefficiencies are the things that are driving the rise of bitcoin.
“We will see more of that … we will see this mature and we will see more regulation around the payments space,” noted the SEC president.
Clayton confirmed on November 16 his plans to end his term at the end of the year after serving more than three and a half years with the SEC. “President Clayton was sworn in on May 4, 2017 and will leave the SEC as one of his longest-lived presidencies,” the SEC wrote.
What do you think about the US regulation on cryptocurrencies and Clayton’s point of view? Let us know in the comments section below.
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