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.
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.
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).
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."
"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
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...
