The former chair of the SEC has taken some interest in the newest regulations that the government is presently working on, involving tons of regulating bodies in the power show of finalizing regulations for cryptocurrencies.
Jay Clayton acknowledged the efforts of the state to finalize a more subtle and enigmatic infrastructure for the crypto market in the form of final regulations that the state is presently working on.
He further commented during an interview recorded on the Wall Street Journal that the state should not rush this thing and proceed with caution because these are no ordinary financial assets; these are cryptocurrencies.
Jay Clayton also said that the state at first must acknowledge the efficiencies or benefits of the cryptocurrencies to the present financial system and how it would prove to be a more direct route towards enabling a financial paradigm that will bring people from the conventional use of the money into the digital space.
While the idea of cryptocurrencies remains elusive and something that is not primarily needed, it must be given proper regulatory measures if the state doesn’t want things to run out of control.
Cryptocurrencies support the idea of decentralization which literally translates into cryptocurrencies running wild with no governing body at all, something that is a bit hard for state officials to digest.
Consider Crypto Benefits Before Regulating Crypto Sector
That is why before finalizing anything in terms of the crypto regulation, the state must make sure that they have got the right candidates in terms of the cryptocurrencies. Is there a need to blacklist a few of the cryptocurrencies based on their vibe on the open market, or should everyone get a free license?
The answer to this question lies in the fact that not all cryptocurrencies are the same; there are obvious differences that linger along tons of cryptocurrencies out there; some of them have the same consensus protocols while others don’t.
That is why it is important to give them some sort of assortment and a category in which these cryptocurrencies seem to fit; without the said categories, the whole idea of regulating the crypto market is completely moot. This is something the state officials might look into.