Jay Clayton seems very optimistic about the future of the cryptocurrency space. During a testimony that he gave to the United States Senate Committee on Banking, Housing and Urban Development, Mr. Clayton, the chairman of the U.S. Securities and Exchange Commission, said that blockchain and virtual currencies will facilitate capital formation.
During the hearing, he emphasized his optimism about the development of distributed ledger technology (DLT). According to what he said, blockchain will be providing new investment opportunities for traditional investors, including institutions.
The SEC is trying to regulate the crypto market and to find new clear regulations for the space to continue growing without breaking laws in the United States. During 2017 and 2018, several Initial Coin Offerings (ICOs) and projects were released to the market. Some of them were just scams and stole people’s funds. This is why the SEC is trying to control the market and avoid having such problems.
About it, Clayton explained that the SEC has been using different channels to educate people about the risks of investing in Initial Coin Offerings. He gave the example of the project that they created with Howeycoins.com in which they showed that it is very easy to steal investors’ money.
He emphasized the work that the SEC is doing to oversight and regulate virtual currencies and tokens from ICOs. Clayton noted that there is an inter-agency collaboration and that they are working with many different divisions to help the market be a better place for users.
A few weeks ago, the SEC released an enforcement action against two different ICOs, Airfox and Paragon. Both of them will have to pay $250,000 fine and give back investors the funds they’ve invested at the beginning.
The same can happen in the future with other projects and ICOs. This is why new ICOs are starting to be more compliant with current laws and trying to offer better products rather than just a whitepaper.
Blockchain technology is also being implemented by several companies around the world. It can enhance different industries and improve processes, products and services. Firms such as IBM, Maersk or JD.com are already using DLT.