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Chris Burniske @cburniske
, 11 tweets, 5 min read Read on Twitter
1/ A few reflections on @andrewrsorkin's interview of Jay Clayton last night. First off, it left me feeling more hopeful for #crypto's regulatory situation.
2/ Clayton and the SEC are not out to get #bitcoin and #ether, this should be obvious by now.

Reading between the lines of his words, it seems Clayton considers $BTC a currency, and $ETH a commodity.
3/ In differentiating a currency from a commodity, he stressed that commodities generally have an “industrial use” beyond serving as a means of exchange.

Will be interesting to see how granular regulators get in classifying the great diversity of #cryptoassets before us.
4/ He often stressed "meaningful use" as being a major factor in differentiating a #cryptoasset from a security.
5/ Given the transparency of data in public blockchains, "meaningful use" is hard to fake.

If you're contorting yourself to prove meaningful use of your "token," you probably have a company that issued a security (albeit on top of a true #cryptonetwork called Ethereum).
6/ While Clayton at one point said that most of this technology can fit into existing regulation, he did concede that we may need new laws if some of these #cryptoassets clearly prove to not be securities/commodities/currencies *and* have material use.
7/ Most provocative to me, Clayton was open to the idea that a #cryptoasset *could* offer a better “principal-agent model" than the current "shareholders and corporate management" model of equities.
8/ Some direct Clayton quotes that rang true:

"We’re not picking winners and losers, we’re protecting investors."

"There’s more to investor protection than eliminating all risk."
9/ Clayton made clear the SEC's aware of the dangers of regulatory arbitrage if #crypto innovation feels unsafe in the US.

But also pointed out the US needs to keep standards high, as the rest of the world looks to us as a model.

TBD how this plays out in a global asset class
10/ Clayton's also aware that @giancarloCFTC has used the hashtag #cryptodad 😂👌 No comment on whether Clayton has a handle...
11/ Lastly, Clayton used the word #cryptoassets like a natural 🤓 cc @JackTatar
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