Former SEC chairman Jay Clayton and former Under-Secretary of the Treasury Brent McIntosh have supported the existing crypto rules in introducing new rules
In an opinion piece in the Wall Street Journal, Jay Clayton and Brent McIntosh claimed that current regulations are enough to keep the crypto sector under surveillance.
The jointly written piece comes at a time when pressure is increasing in the USA to introduce and tighten regulatory measures for the booming digital assets. Two US senators recently voiced the idea of banning crypto in order to solve the exploits following the increasing ransomware attacks.
In the Sunday article, the former regulators stated that the current view of the US government that crypto needs new regulations is fundamentally wrong. Given the risk of over- or under-regulation that comes with re-inventing rules, the government should instead use existing regulatory tools to manage the crypto industry.
They also stated that regulators and policymakers in the financial sector should develop a plan based on current digital asset management regulations. The former SEC chairman and former Treasury Secretary challenged Janet Yellen’s past views on crypto. The current US Treasury Secretary, who is a well-known Bitcoin cynic, insisted that the current framework is not well equipped to regulate crypto.
They also questioned Gary Gensler, the current chairman of the SEC, for saying that crypto markets have no protection against fraud or manipulative acts. The couple also outlined their proposed course of action, stating that the best approach would be based on three main ideas.
The first idea was that efforts should be made to achieve efficiency and clarity of the law of which regulators are tasked with regulating what type of digital assets. Second, they suggested clarifying the requirements for digital assets in the US. This would help reduce risk and encourage new businesses.
The third strategy is for the government to decide the preferred course of action regarding central bank digital currencies (CBDCs) and stablecoins. The industry experts concluded by saying that an organized approach to applying regulations in the crypto market would help achieve responsible innovation. It would also help maintain much-needed stability.