Jack Kubinec

In an appearance on CNBC’s “Squawk Box” Monday morning, former SEC Chair Jay Clayton said he thinks approval on a potential bitcoin spot ETF is a foregone conclusion.&nbsp;



“I think approval’s inevitable…and I think there’s nothing left to decide,” Clayton said.



Clayton was nominated as SEC chair by Donald Trump in 2017 and resigned from the position at the end of 2020.&nbsp;



Near the end of his term, Clayton’s SEC brought <a href="https://www.sec.gov/news/press-release/2020-338">charges</a> against Ripple over an apparent unregistered securities offering. Since then, both Ripple and the SEC were <a href="https://blockworks.co/news/judge-rules-ripple-xrp-not-security">handed partial wins when a judge ruled</a> that the programmatic sale of the XRP token was not an investment contract.



The SEC also <a href="https://blockworks.co/news/sec-drops-dismisses-garlinghouse-case">moved to dismiss charges</a> against both Ripple CEO Brad Garlinghouse and former executive Christian Larsen back in October.



Read more: <a href="https://blockworks.co/news/investors-win-bitcoin-etf-fee-war">Investors are ‘the clear winners’ as bitcoin ETF fee battle comes into focus</a>



Clayton has since become involved in the crypto space. In 2021, he <a href="https://blockworks.co/news/former-sec-chairman-jay-clayton-joins-crypto-platform-fireblocks">joined an advisory board</a> at crypto custody platform Fireblocks. He has <a href="https://blockworks.co/news/crypto-regulate-itself-massad-clayton">been an active voice</a> in discussions about crypto regulation — and now, the several pending applications for bitcoin spot ETFs.&nbsp;



Grayscale was stymied in getting its bitcoin spot ETF approved <a href="https://blockworks.co/news/spot-bitcoin-etf-timeline">throughout</a> Clayton’s term. In the segment, Clayton seems to allude to his seeming about-face on the service.



“Five years ago there was wash sales, there was laddering, there was all sorts of things that you wouldn’t want to make available to the general public,” Clayton said.&nbsp;



Clayton’s SEC rejected bids to launch a bitcoin ETF during his tenure.



A decision on the potential spot bitcoin ETFs is expected later this week. The SEC has until Jan. 10 to give a bitcoin ETF proposal from Ark 21Shares a decision. Potential issuers have already <a href="https://blockworks.co/news/where-bitcoin-etf-proposals-stand">submitted amended registration filings</a> detailing fees and other key details in anticipation of a possible decision.&nbsp;



Bitcoin’s <a href="https://blockworks.co/price/btc">price</a> spiked past $47,000 Monday as investors anticipate SEC approval of several spot bitcoin ETFs. 



Current SEC Chair Gary Gensler penned an X <a href="https://x.com/GaryGensler/status/1744383653008839126?s=20">thread</a> Monday morning outlining some of the risks involved with investing in crypto, adding <a href="https://x.com/Eric_BIGfund/status/1744385887373267432?s=20">fuel</a> to speculation that the agency’s decision is imminent.



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bitcoin etf

Former SEC chair calls bitcoin ETF approval ‘inevitable’

Casey Wagner

If crypto companies are so keen on getting clear policy passed, they should focus on ponying up the cash to help fund a regulatory body, not fighting it out in court, former agency heads argue.&nbsp;



Former CFTC Chair Timothy Massad and former SEC Chair Jay Clayton co-authored an opinion piece in the <a href="https://www.wsj.com/articles/regulating-crypto-markets-1e5ec5c5">Wall Street Journal</a> earlier this month.&nbsp;



Massad and Clayton called for collaboration between the SEC and CFTC to “jointly develop basic investor and market protection standards for trading platforms as they exist today,” their op-ed read.&nbsp;&nbsp;



“The agencies could act directly or through a self-regulatory organization, shifting funding responsibility to the industry,” the two added. “Having Congress mandate this approach would be even better.”



The current “regulation by enforcement” strategy regulatory agencies, particularly the SEC, seem currently interested in leads to lengthy and expensive litigation. Waiting on court cases to resolve is not an effective strategy for creating policy, Massad and Clayton argue.&nbsp;



“We also believe that these enforcement actions, in themselves, are unlikely to bring about a significant improvement in investor protection and market integrity quickly,” Massad and Clayton wrote.&nbsp;



Massad and Clayton’s comments come as <a href="https://blockworks.co/news/crypto-needs-democrats-on-board">lawmakers continue to struggle to get on the same page</a> about crypto regulation, namely when it comes to allocating responsibilities to different agencies.&nbsp;



The current Digital Asset Market Structure Bill discussion draft, by Republican chairs Patrick McHenry and Glenn Thompson, of the House Financial Services and Agriculture Committees, respectively, attempts to reshuffle power between the SEC and CFTC.&nbsp;



McHenry and Thompson call for giving control over digital asset spot commodities markets to the CFTC, although this calls into question the process of token classification, which the SEC has lately spearheaded. Some lawmakers have argued that the CFTC would need significantly more funding to achieve the goals laid out in the discussion draft, but the bill does not include anything on agency budget.&nbsp;



The SEC and CFTC need to be involved in crypto regulation, Massad and Clayton agree, but the industry could fund a new oversight body.&nbsp;



Similar to how banking and savings institutions fund the Federal Depository Insurance Corporation, crypto firms could be required by Congress to bear the cost of a regulatory agency, Massad and Clayton suggest.&nbsp;



“It won’t cost taxpayers,” the two added.



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CFTC

Crypto should regulate itself? Massad and Clayton think so

Katherine Ross

Former SEC Chair <a href="https://blockworks.co/tag/jay-clayton">Jay Clayton</a> does not think litigation carves the path forward for crypto regulation, a belief that seems to differ from the SEC’s current stance, with multiple open court cases against crypto companies.&nbsp;



“These lawsuits are unlikely to address questions of whether existing laws need to be adjusted to deal with particular features of digital tokens,” Clayton and former CFTC Chair Timothy Massad <a href="https://www.wsj.com/articles/regulating-crypto-markets-1e5ec5c5?mod=hp_lista_pos3">wrote</a> in the Wall Street Journal on Friday, June 7 — the second piece the duo has penned specifically on the regulation of digital assets.



Furthermore, they argue, a judge should not “address the board and technical questions of a market structure and operation in the context of a case that hives on the classification of a particular token.”



Clayton <a href="https://blockworks.co/news/jay-clayton-doesnt-like-regulation-by-enforcement">has previously spoken out</a> against the current regulation-by-enforcement approach that the SEC is taking.&nbsp;



In December of last year, Clayton and Massad <a href="https://www.wsj.com/articles/how-regulate-cryptocurrency-markets-11670110885?mod=article_inline">explained</a> how to start regulating crypto markets following the collapse of <a href="https://blockworks.co/news/fed-ftx-doesnt-pose-broader-risk">FTX</a> and <a href="https://blockworks.co/news/doj-terrausd-stablecoin">TerraUSD</a>.&nbsp;



The duo suggested that regulatory agencies require crypto intermediaries to “implement basic consumer protections,” provide regulatory rules around the use of stablecoins, and enforce the law — even going so far as to say that “enforcement is necessary with many in the industry will use any colorable claim to avoid or delay compliance.”



Though they have slightly changed their tune in their July follow-up, noting that they both believe that the SEC and CFTC should work together to “jointly develop basic investor and market protection standards.”



There are a few reasons for their suggestions: It would curtail complexity, it won’t cost taxpayers, and it doesn’t involve rewriting the law as it stands.



But, similar to <a href="https://blockworks.co/tag/coinbase">Coinbase</a>, they also believe that having Congress mandate an approach would be “even better.”



Coinbase, <a href="https://blockworks.co/news/sec-cant-seize-power">in a response to the SEC’s lawsuit</a>, has said the SEC does not have the authority to “seize power” in regulating digital assets, and has called on Congress to close the “regulatory gap.”



Clayton and Massad argue that crypto regulation and the overall utility of crypto will continue to happen, but “better regulation shouldn’t turn on that debate, nor on partisan lines.”



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Gary Gensler

Former SEC, CFTC chairs push back on SEC’s crypto lawsuits

James Cirrone

Jay Clayton, who served as SEC chair from May 2017 to December 2020, went on CNBC’s Squawk Box for a general discussion Monday.



And Clayton, not the hosts, was the one who pivoted the interview from Wagner’s rebellion in Russia to bring up the regulatory environment in the US. He planted a flag of vehement disagreement with the way the US government is choosing to bring about regulatory change. That is, through court actions he says government agencies “think they&#8217;re going to lose.”



“What you&#8217;re hearing from the leaders of the regulatory organizations is if we&#8217;re not losing cases, if we&#8217;re not being pushed back on by the courts, we&#8217;re not doing enough,” Clayton said.



He continued, “That is a fundamental shift in how we, as Americans, view the role of the government. I don&#8217;t want to be in a place where I know the government is going to bring cases they think they&#8217;re going to lose. Imagine you&#8217;re the person who is the subject of that case.”



Cameron Winklevoss, co-founder and president of Gemini, tweeted out the clip of Clayton and added his own take, tying it directly to the SEC under current Chair Gary Gensler.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">A must watch. Former SEC Chairman Jay Clayton describes the new and deeply un-American ethos of the <a href="https://twitter.com/SECGov?ref_src=twsrc%5Etfw">@SECGov</a> under <a href="https://twitter.com/GaryGensler?ref_src=twsrc%5Etfw">@GaryGensler</a> — if we&#39;re not losing cases, we aren&#39;t suing enough businesses. This is a total abuse of power. <a href="https://t.co/G0HxL4s8Y1">pic.twitter.com/G0HxL4s8Y1</a>&mdash; Cameron Winklevoss (@cameron) <a href="https://twitter.com/cameron/status/1674132255906713605?ref_src=twsrc%5Etfw">June 28, 2023</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Clayton didn’t explicitly mention the SEC or Gensler in his comments.



In crypto, the most high-profile lawsuits the US government has pursued have been against <a href="https://blockworks.co/news/binance-changpeng-zhao-face-sec-charges">Binance</a> and <a href="https://blockworks.co/news/sec-sues-coinbase">Coinbase</a>, the SEC accusing both companies of selling unregistered securities.



Clayton didn’t comment on those specific cases, but his messaging on the state of crypto regulation has been clear.



In a May 24 appearance on Squawk Box, before the SEC went after the two largest crypto exchanges, Clayton said, “Crypto has not been handled well by the industry, or frankly by the regulators on a global basis.”&nbsp;



In the same conversation, he even made the point that blockchain technology could be a good way to trace money, thereby unraveling crimes.



“People use $100 bills for nefarious [activities]. Are we going to shift from $100 bills to programmable money, where it&#8217;s much easier to detect illicit activity?” he inquired at the time.



That’s a far cry from the attitude Gensler took on digital assets immediately after his agency unveiled its enforcement actions.&nbsp;



On June 6, the day the SEC brought down the hammer on Coinbase, Gensler was adamant that <a href="https://blockworks.co/news/gensler-dollar-is-digital-currency">crypto assets don’t have a place in the global economy</a>.



“We don’t need more digital currency. We already have digital currency. It’s called the US dollar. It’s called the euro. It’s called the yen. They’re all digital right now. We already have digital investments,” Gensler said.



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Jay Clayton

Former SEC Chair Jay Clayton takes aim at regulation by enforcement

Jacquelyn Melinek

<div id="highlights-block_61dcb75f017f4" class="highlights">
 
</div>


<div id="highlights-block_61dcb8b9017f5" class="highlights">
 <ul>
 <li>There are a number of paths forward for the industry, according to Clayton</li>
 <li>“This asset class, in my view, is here to stay in one form or another. Whether it’s stablecoins or something else,” Clayton said</li>
 </ul>
 
</div>



Former US Securities and Exchange Commission (SEC) Chairman Jay Clayton said digital assets will change the global financial infrastructure, but it’s unclear which types of assets will be most transformative.&nbsp;



“I see digital assets, whether [they are] in the form of a tokenized traditional security, a stablecoin or a new type of asset, being part of our global infrastructure,” he said in an interview with Blockworks.



Exactly what form those digital assets will take is yet to be determined. “You need to distinguish tokenization and crypto technology from cryptocurrencies,” Clayton said. “If you look at the prospects for the combination of tokenization and smart contracts in our financial infrastructure, two things stand out,” he noted. The first is efficiency gains that are available in the existing infrastructure and the second is the opportunity that efficiency brings to reach additional markets and create new ones, he added.&nbsp;



Clayton said the impact crypto technology has had on cross-border payments could provide a guide to future developments.&nbsp;



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">“The ability to eliminate the frictions that exist in the current global banking system, particularly in emerging markets — as has been demonstrated by the volume of 24/7 global trading in bitcoin — is going to be hard to resist,” he said.&nbsp;</blockquote>



Clayton, who became notorious in the crypto industry during late 2020 after <a href="https://www.sec.gov/news/press-release/2020-338" target="_blank" rel="noreferrer noopener">charging</a> Ripple and two of its executives for allegedly conducting an unregistered securities offering, has more recently become an <a href="https://cms.blockworks.co/former-sec-chairman-turned-crypto-advisor-defends-move-to-private-sector/" target="_blank" rel="noreferrer noopener">advocate</a>.&nbsp;



After departing from the SEC at the end of 2020, he began two roles during 2021 as an advisory board member for crypto companies, <a href="https://cms.blockworks.co/former-sec-chairman-jay-clayton-joins-crypto-platform-fireblocks/" target="_blank" rel="noreferrer noopener">Fireblocks</a> and <a href="https://www.prnewswire.com/news-releases/one-river-digital-asset-management-welcomes-jay-clayton-kevin-hassett-and-jon-orszag-to-newly-formed-academic-and-regulatory-advisory-council-301257503.html" target="_blank" rel="noreferrer noopener">One River</a> Digital Asset Management and subsequently wrote an <a href="https://www.wsj.com/articles/america-future-depends-on-blockchain-crypto-bitcoin-payments-transfers-federal-reserve-11639668586">op-ed</a> in the Wall Street Journal in December 2021 about how America’s future depends on the blockchain and time is of the essence for the US to adopt this technology.



“This asset class, in my view, is here to stay in one form or another. Whether it’s stablecoins or something else,” Clayton said.&nbsp;



<h3 class="wp-block-heading">Industry paths</h3>



There are a number of paths forward for the industry, in Clayton’s estimation. One of those paths is for stablecoins to map to our current system, where there is a government stablecoin that is used for the regulated banking system and then regulated stablecoins that are used for institutional or consumer purposes, he said.&nbsp;



The current SEC and Federal Reserve leadership have raised some concerns over stablecoins, however. Chairman Gary Gensler compared them to poker chips in September 2021, Blockworks previously <a href="https://cms.blockworks.co/secs-gensler-stablecoins-are-poker-chips/" target="_blank" rel="noreferrer noopener">reported</a>.



Separately, in July 2021, US Federal Reserve Chairman Jerome Powell said that stablecoins <a href="https://cms.blockworks.co/most-fed-officials-say-inflation-goal-met-tapering-to-start-this-year/" target="_blank" rel="noreferrer noopener">pose a threat </a>and exist within an “underdeveloped regulatory framework,” but later reassured market players that he <a href="https://cms.blockworks.co/powell-i-have-no-intention-of-banning-stablecoins/" target="_blank" rel="noreferrer noopener">doesn’t intend to ban</a> the digital tokens.&nbsp;



<h3 class="wp-block-heading">Regulation is key</h3>



Whichever path is taken, the transition will be difficult, Clayton said, unless the key aspects of the US time-tested financial regulatory system, including anti-money laundering, know-your-customer and investor protection, are respected, he said.&nbsp;



Gensler has also said that digital assets have potential, but aren’t immune to regulatory oversight.&nbsp;



“I believe in the fundamentals of our regulatory structure and I don’t think they should change,” Clayton said. “[These technologies] can perform the regulatory functions, at least as well as the existing technology. Its incorporation in our financial infrastructure should be facilitated, but we should not be relaxing our regulatory principles and objectives to facilitate this technology,” he added.



Cryptocurrency markets have shown uncertainty recently as the global crypto market capitalization fell 2.95% over the last 24 hours to $1.93 trillion, but the total value of crypto traded increased 37.14% to $101.96 billion during that time frame, according to <a href="https://coinmarketcap.com/" target="_blank" rel="noreferrer noopener">data</a> by CoinMarketCap.



The two largest cryptocurrencies, bitcoin and ether, were <a href="https://cms.blockworks.co/markets-uncertain-after-early-morning-dip-eth-lags-btc/" target="_blank" rel="noreferrer noopener">down</a> 12.63% and 18.53% year-to-date, respectively, on Monday at 5:40 pm ET.



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cryptocurrency

Former US SEC Chairman: Digital Assets Will Change Global Financial Infrastructure

<div id="highlights-block_61d4de7235bc0" class="highlights">
 <ul>
 <li>Clayton is not alone in his move from government into the crypto industry as a handful of former government employees have shifted to the field </li>
 <li>Ripple CEO Brad Garlinghouse wrote, “Mr. Clayton stifled the crypto industry while in office, yet now he calls for the government to facilitate the adoption of the technology” </li>
 </ul>
 
</div>



Former US Securities and Exchange Commission (SEC) Chairman Jay Clayton has been in the crosshairs of crypto enthusiasts after joining the advisory boards of two crypto companies, <a href="https://cms.blockworks.co/former-sec-chairman-jay-clayton-joins-crypto-platform-fireblocks/" target="_blank" rel="noreferrer noopener">Fireblocks</a> and <a href="https://www.prnewswire.com/news-releases/one-river-digital-asset-management-welcomes-jay-clayton-kevin-hassett-and-jon-orszag-to-newly-formed-academic-and-regulatory-advisory-council-301257503.html" target="_blank" rel="noreferrer noopener">One River</a> Digital Asset Management, months after <a href="https://www.sec.gov/news/press-release/2020-338" target="_blank" rel="noreferrer noopener">charging</a> Ripple and two executives with conducting an unregistered securities offering during his last days in office in 2020.&nbsp;



But Clayton told Blockworks that he hadn’t expected to be involved in companies in the digital asset space when he left his government position in December 2020. He said he agreed to advise those organizations because, after being introduced to and talking in-depth with the founders, he was impressed by their understanding of and approach to the modernization of financial infrastructure.&nbsp;



The SEC’s action against Ripple Labs and its CEO Brad Garlinghouse and Chairman Christian Larsen set off a sharp slide in the firm’s cryptocurrency, XRP — although Garlinghouse said the ensuing year was Ripple&#8217;s strongest ever, Blockworks <a href="https://cms.blockworks.co/one-year-after-sec-lawsuit-ripple-ceo-says-2021-was-their-best-year-yet/" target="_blank" rel="noreferrer noopener">previously reported</a>. 



Clayton’s move against Ripple also infuriated many of its supporters who demanded answers on how XRP was considered a security by the SEC, while other cryptocurrencies like ether were not being charged.



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">Clayton said he couldn’t comment on the Ripple action because it’s a pending case, but in an interview with Blockworks he said, “If you’re raising money from the general public in the form of a tradable instrument to finance a project or venture, that’s a securities offering and that needs to be conducted in accordance with the registration requirements of the SEC, including providing financial statements and other important disclosures.”</blockquote>



“I think if you look at the body of work the SEC has done, there is a consistent theme,” he said.



Clayton is not alone in his move from government into the crypto industry. The space has embraced a handful of former government employees including the former acting comptroller of the US Currency, Brian Brooks, who <a href="https://cms.blockworks.co/bitfury-ceo-brian-brooks-joins-board-of-voyager-digital/" target="_blank" rel="noreferrer noopener">joined</a> Voyager Digital’s board of directors in December 2021 after a stint at <a href="http://binance.us/" target="_blank" rel="noreferrer noopener">Binance.US</a>.



In December 2021, Clayton wrote in an <a href="https://www.wsj.com/articles/america-future-depends-on-blockchain-crypto-bitcoin-payments-transfers-federal-reserve-11639668586" target="_blank" rel="noreferrer noopener">opinion piece</a> for the “Wall Street Journal” that America’s future depends on the blockchain and time is of the essence for the US to adopt this technology.



In a follow-up to the op-ed in the WSJ, Ripple CEO Brad Garlinghouse <a href="https://www.wsj.com/articles/blockchain-crypto-defi-sec-ripple-regulation-lawsuit-access-warren-11640218049" target="_blank" rel="noreferrer noopener">wrote</a>, “Mr. Clayton stifled the crypto industry while in office, yet now he calls for the government to facilitate the adoption of the technology.”



A Ripple spokesperson declined Blockworks’ request for further comment but referred to a recent <a href="https://twitter.com/bgarlinghouse/status/1471623048323162113" target="_blank" rel="noreferrer noopener">tweet</a> from Garlinghouse as well as his WSJ op-ed.



<hr class="wp-block-separator"/>



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<hr class="wp-block-separator"/>

Fireblocks

Former SEC Chairman-Turned-Crypto Advisor Defends Move to Private Sector

<div id="highlights-block_61a7bce4d516b" class="highlights">
 <ul>
 <li>Gary Gensler maintains that cryptocurrency exchanges need to follow the same rules as everyone else </li>
 <li>The crypto community, once a fan of Gensler, has taken a harsher view of the SEC head in recent months </li>
 </ul>
 
</div>



US Securities and Exchange Commission (SEC) Chair Gary Gensler stuck to his guns on Wednesday,&nbsp; reiterating that cryptocurrency companies and exchanges will not be able to operate outside of regulatory oversight for much longer.&nbsp;



Gensler was joined by former SEC chair and current senior policy advisor at Sullivan &amp; Cromwell Jay Clayton at the <a href="https://www.youtube.com/watch?v=9uEXKptMYhM" target="_blank" rel="noreferrer noopener">Digital Asset Compliance &amp; Market Integrity Summit</a> in New York Wednesday. 



Some cryptocurrency exchanges may be flying under the radar for now, Gensler said, but these companies will have to start conducting business within regulatory frameworks soon. Cryptocurrency exchanges should be registered with the SEC just like traditional securities exchanges, he insisted.&nbsp;



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">“​​If you think there&#8217;s some reason that you can&#8217;t quite register as a full exchange&#8230;work with us,” Gensler said. “I think a better path for these platforms, these exchanges and lending platforms, is to work to get registered within the law.” </blockquote>



Clayton did not disagree, pointing out that this new asset class should, in many cases, not be exempt from existing rules.&nbsp;



“Just because you call this a token, doesn&#8217;t mean it&#8217;s not a security,” Clayton said.&nbsp;



<h3 class="wp-block-heading">Welcome cheerleader no more</h3>



The <a href="https://cms.blockworks.co/secs-gensler-stablecoins-are-poker-chips/" target="_blank" rel="noreferrer noopener">crypto community first saw Gensler</a>, who took over from Clayton in April, as a welcome cheerleader for the industry.



Gensler taught a blockchain course at the Massachusetts Institute of Technology and also served as a co-director of Fintech@CSAIL, a research group that investigates disruptive technologies.&nbsp;



However, recent moves by the SEC have led former fans in the crypto industry to take a harsher look at Gensler. Exchange-traded fund issuers in particular have been outspoken in recent weeks following the approval and subsequent launch of the first futures-based ETFs. Failure to approve a spot-based product is <a href="https://cms.blockworks.co/grayscale-attorneys-argue-sec-for-spot-bitcoin-etf-approval/" target="_blank" rel="noreferrer noopener">inconsistent, some argue</a>. 



When pressed about why a spot bitcoin ETF has not yet been approved, Gensler declined to comment, saying he was advised by his counsel not to speak on pending matters. There are several spot bitcoin ETF filings currently sitting with the SEC.&nbsp;



Gensler’s education is certainly a positive, other speakers at the summit agreed, but the conversation around regulation needs to shift.&nbsp;



“The hope of having a staff that understood the issues? I think we got that,” Ophelia Synder, co-founder and president of 21Shares, said in a panel discussion after Gensler&#8217;s and Clayton’s fireside chat concluded. “I think the most interesting takeaway for me from that conversation was the focus on centralization as the road to regulation as opposed to finding ways to adapt regulations to a decentralized reality.”



<hr class="wp-block-separator"/>



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<hr class="wp-block-separator"/>

Gensler Says Centralized Regulation is Path for Crypto

Liz Coyne

In the weekly roundup episode of Blockworks&#8217; podcast &#8220;<a href="https://www.youtube.com/watch?v=Y2DPySOE1pA" target="_blank" rel="noreferrer noopener">On the Margin</a>,&#8221; Michael Ippolito, co-founder, sits down with Economic Strategist Tyler Neville to talk about the news in macro, including Mike and Tyler cover Binance’s regulatory issues, OnlyFans ban on pornography, and Jay Clayton joining Fireblocks’ board.



Watch the podcast to find out more on:



<ul class="wp-block-list"><li>The US Misery Index</li><li>Binance&#8217;s regulatory issues</li><li>OnlyFans ban on pornography</li><li>Jay Clayton joining Fireblocks’ board</li></ul>



Watch the full episode below:



<figure class="wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio"><div class="wp-block-embed__wrapper">
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&#8220;On the Margin&#8221; is a two-part show.&nbsp;Once a week, Mike interviews industry experts, and then at the end of the week he is joined by co-host <a href="https://cms.blockworks.co/newsletter/" target="_blank" rel="noreferrer noopener">Tyler Neville</a> where they break down the top crypto and macro stories. Episodes go live every Wednesday and Saturday morning.



Subscribe to &#8220;On the Margin&#8221; today on <a href="https://podcasts.apple.com/us/podcast/lyn-alden-explains-connection-between-inflation-bitcoin/id1558223079?i=1000513411286" target="_blank" rel="noreferrer noopener">Apple</a> or <a href="https://spoti.fi/3bTa9uw" target="_blank" rel="noreferrer noopener">Spotify</a>, or watch episodes on <a href="https://youtube.com/playlist?list=PLvER9nHSRN3xVs_p-dl7L7K_ZgL6lSudu" target="_blank" rel="noreferrer noopener">YouTube</a>.

Binance

Weekly Roundup: Binance, OnlyFans and Jay Clayton

<div id="highlights-block_611e6b272446b" class="highlights">
 <ul>
 <li>Clayton told Blockworks his primary role as a member of the advisory board is to help the company and its customers understand how these new digital solutions and investment opportunities best fit within existing market infrastructure, processes and regulations</li>
 <li>With regards to the government adopting digital assets, Clayton said that the government will have to look at the function that crypto-assets are providing and “they will be regulated in the same way as the incumbent assets that serve a similar function are.” </li>
 </ul>
 
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Institutional digital asset custody company, Fireblocks, has announced that former US Securities and Exchange Commissioner Chairman Jay Clayton has joined the company’s advisory board.&nbsp;



Clayton has over three decades of experience in international financial markets and <a href="https://www.sec.gov/biography/jay-clayton" target="_blank" rel="noreferrer noopener">served</a> as the chairman from May 2017 to December 2020.



“I&#8217;ve spent a fair amount of time over my career looking at the infrastructure in the capital markets space and watching past developments. If you look at the move to decimalization in the trading of equities, if you look at the move to digital processing that&#8217;s now going on in fixed income trading, this is just another piece of that evolution, and it&#8217;s interesting to have a front-row seat for that,” Clayton told Blockworks in an interview.&nbsp;



His appointment will help guide Fireblocks “on navigating requirements for the support, development and deployment of solutions for the emerging digital asset infrastructure,” the company said.&nbsp;



Since launching in June 2020, the Fireblocks Network has amassed over 500 participants who actively move assets across 30 of the world’s largest digital asset exchanges, such as Binance, Bitfinex, Coinbase, FTX and more.



“I share Fireblocks&#8217; view that this type of digitization is going to come to many of our processes, it&#8217;s going to enable new products, like some of the crypto assets you see, but it&#8217;s also going to add efficiencies and resiliency to more traditional forms of finance,” Clayton said. &#8220;When you have a new technology and the technology gets exciting, if it can satisfy the regulatory objectives at least as well as the incumbent technology, and if it can do so in a better way, then you&#8217;ve really got something,” he said.



All in all, Clayton told Blockworks his primary role as a member of the advisory board is to help the company and its customers understand how these new digital solutions and investment opportunities best fit within existing market infrastructure, processes and regulations.&nbsp;&nbsp;



<h3 class="wp-block-heading">Clayton&#8217;s thoughts on SEC adoption of cryptocurrency</h3>



In regards to the government adopting digital assets, Clayton said that the government will have to look at the function that crypto-assets are providing and “they will be regulated in the same way as the incumbent assets that serve a similar function are.”&nbsp;



“It only makes sense in our global financial infrastructure for that regulatory coherence to stay in place,” he said. “I&#8217;ve long said that the new technology should not cause us to change the fundamental protections in our securities markets,” he added.&nbsp;



Earlier this month, the current SEC Chairman Gary Gensler said that though he believes blockchain technology could continue to be a catalyst for change in the fields of finance and money, he warned against industry players working outside of regulatory frameworks, Blockworks previously <a href="https://cms.blockworks.co/sec-chair-gensler-prioritizes-crypto-platform-crackdown/" target="_blank" rel="noreferrer noopener">reported</a>.&nbsp;



During the virtual Aspen Security Forum on August 3, Gensler laid out some of the “significant gaps” in investor protection that the SEC will be looking to crack down on when it comes to various crypto platforms.&nbsp;



“In this digital, scarce speculative asset of bitcoin and others, we just don’t have enough investor protection, and frankly, at this time, it’s more like the Wild West,” Gensler said.



Separately, since the first bitcoin ETF application was filed eight years ago (and rejected), there have been over 12 applications sent in to the SEC, with more recent <a href="https://cms.blockworks.co/sec-delays-approval-of-vaneck-bitcoin-etf-again/" target="_blank" rel="noreferrer noopener">notable companies</a> like Valkyrie and Wisdom Tree requesting for approval.&nbsp;



But the SEC’s hesitation in approving a bitcoin ETF is not stopping issuers from filing to launch them. In late July, Global X, a New York-based fund group with more than $37 billion in assets under management across more than 80 ETFs, <a href="https://cms.blockworks.co/global-x-adds-to-stack-of-bitcoin-etfs-proposed-to-sec/" target="_blank" rel="noreferrer noopener">filed for an ETF</a>, according to a July 21 SEC disclosure, Blockworks previously reported.



In general, Clayton also said he expects crypto-assets will be subject to the same Anti-Money Laundering, Know Your Customer, and Bank Secrecy Act types of requirements that international wire transfers are subject to.&nbsp;



Want more investor-focused content on digital assets?&nbsp;<a target="_blank" href="https://cms.blockworks.co/events/digital-asset-summit-2021-2/" rel="noreferrer noopener">Join us</a>&nbsp;September 13th and 14th for the Digital Asset Summit (DAS) in NYC. Use code ARTICLE for $75 off your ticket.&nbsp;<a target="_blank" href="https://cms.blockworks.co/events/digital-asset-summit-2021-2/" rel="noreferrer noopener">Buy it now</a>.

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