Crypto can still improve financial system says ex SEC chair

Even amidst the current chaos and collapses that are permeating the cryptocurrency industry, Jay Clayton, former chair of the SEC, says that crypto can still contribute to improvements in traditional finance.

Negative press

Crypto has found an unlikely ally in the former head of the Securities and Exchange Commission (SEC), Jay Clayton. While crypto is being scorned and maligned to the heavens over the sequence of large exchange collapses, Clayton recently remarked in an interview that “the promise of distributed ledger technology is remarkable.”

Clayton is receiving some quite negative press over his remarks, and a pro-blockchain op-ed of his that was published in the Wall Street Journal was also deplored by several commentators.

Clayton tenure not kind to crypto

However, despite this, history tells us that the ex SEC chair has not been kind to crypto in the past. Just like the current SEC chair Gary Gensler, Clayton refused to approve any exchange traded funds (ETFs), and it was during his tenure that the SEC originally took Ripple Labs to court over violation of securities laws.

Supportive of SEC Gensler

According to an article in Business Insider, Jay Clayton is also on the record as being supportive of Gensler in that he believes that all crypto intermediaries can be regulated, drawn from rules that are already in place.

In addition, he is of the opinion that the SEC should “vigorously crack down” on crypto platforms that are seen as trading securities, and should continue to do so.

Stablecoin compliance is one other area where Clayton is of the view that there is much risk of counterparty and credit risk. He feels that bank regulators could lead in this area.

Clayton now a crypto insider?

So why is Jay Clayton talking up crypto right now?

Since leaving office in 2020, Clayton has held a number of roles in the crypto industry. Therefore he could now be seen as having quite a lot more knowledge on the industry.

He is currently a senior policy advisor for Sullivan & Cromwell, a law firm that has a lot of business with crypto firms. He is on the board of crypto infrastructure provider Fireblocks, and he has advisory roles at One River Digital Asset Management, and also Apollo Global Management, which is an investor in blockchain.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.