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Jay Clayton seems very optimistic about the future of the cryptocurrency space. During a testimony he delivered to the US Senate Committee on Banking, Housing and Urban Development, Clayton, president of the US Securities and Exchange Commission, said that blockchains and virtual currencies will facilitate capital formation.
During the hearing, he emphasized his optimism on the development of distributed ledger technology (DLT). According to what he said, blockchain will offer new investment opportunities for traditional investors, including institutions.
The SEC is trying to regulate the cryptography market and find new clear rules for space to continue growing without breaking US laws. During 2017 and 2018, several initial coin offerings (ICOs) and projects were placed on the market. Some of them were just scams and they stole people's funds. This is why the SEC is trying to control the market and avoid having such problems.
By the way, Clayton explained that the SEC used several channels to educate people about the risks of investing in Initial Coin Offerings. He gave an example of the project they created with Howeycoins.com in which they demonstrated that it is very easy to steal investors' money.
He emphasized the work the SEC is doing to oversee and regulate virtual currencies and tokens from ICO. Clayton noted that there is a collaboration between agencies and they are working with many different divisions to help the market be a better place for users.
A few weeks ago, the SEC released a lawsuit against two different ICOs, Airfox and Paragon. Both will have to pay $ 250,000 and return to the investors the funds they invested in the beginning.
The same can happen in the future with other projects and ICO. This is why the new ICOs are starting to comply with current laws and are trying to offer better products than just a white paper.
Blockchain technology is also implemented by several companies around the world. It can improve different sectors and improve processes, products and services. Companies like IBM, Maersk or JD.com are already using DLT.
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