Crypto News: Former US Securities and Exchange Commission (SEC) Chairman Jay Clayton became a subject of criticism on Friday with his support for Gary Gensler on crypto token classification. While crypto market leaders pinned their hopes on getting an edge over regulators through litigation, Clayton said courts are ultimately not efficient at clearing the air around differentiation between securities and commodities. He made the comments on the back of Gensler’s failure to answer specifically about whether Ethereum (ETH) is a security or commodity.
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During the recent House Financial Services Committee hearing, Gary Gensler dodged the question of how crypto companies should comply with the laws. Committee Chair Patrick McHenry strongly opposed Gensler’s position that existing securities laws are already compatible with the crypto market.
Jay Clayton supports Gensler
Speaking about the state of the crypto market and the debate surrounding regulation, Clayton said securities may eventually become commodities, but currently many cryptocurrencies appear to be securities. He explained that these assets now give a first mover advantage to early investors in crypto projects, thus acting as securities. He did, too, during a discussion on CNBC on Friday said,
“The courts are not an efficient place to resolve classification issues around securities and commodities.”
His comments drew criticism from the crypto community, which was bolstered by Gensler’s quirks about lack of clarity at the Congressional hearing. Meanwhile, US regulators are facing a new wave of fear following the European Union’s vote to pass the Markets in Crypto-Assets (MiCA) regulation. MiCA is touted as the first comprehensive rules for digital crypto asset service providers.
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Anvesh reports major developments around crypto adoption and trading opportunities. He has been associated with the industry since 2016 and is now a strong advocate for decentralized technologies. Anvesh is currently based in India. Contact him at [email protected]
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