Jay Clayton Update

Jay Clayton, the former chairman of the US Securities and Exchange Commission, said he believes in the promise of blockchain technology and the need for more regulation of the crypto industry.

“The U.S. government is interested in ensuring that as long as the world begins to digitize, U.S. regulation continues to be sound and continues to be the gold standard, but it also promotes the adoption of technology,” he told the Financial Times, as he joined the digital asset infrastructure provider Fireblocks’ advisory board.

“I have always liked the potential efficiency of this technology,” he added. “But just because technology has great promise doesn’t mean you can use it to escape the law.”

Headquartered in New York Fire block Provide a “one-stop” platform for institutions to hold, transfer and issue digital assets in different jurisdictions. Its clients include London challenger bank Revolut, retail trading platform eToro and crypto bank Galaxy Digital.

Last month, Fireblocks raised a Series D financing at a valuation of US$2 billion, led by Sequoia Capital, Stripes and Spark Capital. Its investors include the venture capital arm of Bank of New York Mellon, Silicon Valley Bank and SCB 10X, the venture capital arm of Siam Commercial Bank of Thailand.

Clayton said he didn’t know that Fireblocks had received more than $1 trillion in digital asset transfers until they approached him about this role. But he said that the transition to blockchain technology in the financial infrastructure sector is “almost inevitable”, and he appreciates the startup’s “commitment to behave in the right way around the world from a regulatory perspective”.

“Back office space, inter-agency space, people are already familiar with digital entrances, etc., are a good place,” he said.

During his tenure with the U.S. Securities and Exchange Commission from 2017 to 2020, Clayton was known for restricting the arbitrary initial coin offering (ICO) market by designating digital fundraising as securities. His employees also refused to approve Bitcoin exchange-traded funds, which frustrated many in the industry at the time.

Clayton told the Financial Times that the securities law framework has been “well structured to handle digital asset securities”, but it is expected that new regulations may be needed to monitor other emerging digital assets that are not classified as securities, such as digital collectibles or transactions. Card.

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He also warned that as an increasingly important asset in the digital economy, stablecoins may become an entry point for illegal transactions “if they are not created, maintained and monitored in a regulated environment.”He praised Treasury Secretary Janet Yellen for bringing Together recently Develop a framework to manage them. “Issues like this should not be decided by an agency,” he said.

Clayton is just the latest head of the US financial regulator to seek opportunities in the crypto economy.

Christopher Giancarlo, former head of the Commodity Futures Trading Commission Join the board of directors Earlier this year, Bitcoin lender BlockFi established a research project to explore the digital currency options of the U.S. Central Bank.

In March, Clayton joined the advisory board of crypto asset management company One River Asset Management, which has submitted its own Bitcoin ETF application.After leaving the US Securities and Exchange Commission, he also join in Apollo Global Management serves as lead independent director.


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