Jay Clayton, a former chairman of the US Securities and Exchange Commission, said clarification of regulations on stablecoin and custody should be prioritized and will help boost the crypto industry.
Clayton is currently a member of the Advisory Board of Fireblocks, Cryptographic Administrators, and Of Counsel of Law Firm Sullivan & Cromwell, speaking at the Bloomberg Crypto Summit on July 19. He added that the crypto ecosystem cracks that have emerged in the last few months have occurred many times earlier in financial markets.
“Many leverages, price adjustments, over-leverage and flushing out people who don’t have enough capital or liquidity are old lessons,” says Clayton.
He wants regulators to take steps to unleash the power of the private market while protecting investors, especially individual clients.
Jay Clayton, Sullivan & Cromwell
“Our payment system is at the core of all financial transactions,” he added. “Once you start to understand it correctly, the opportunity to digitize and tokenize your assets, whether old or new, is important.”
As a result, he said that Stablecoin has many stablecoin transactions around the world 24 hours a day, 7 days a week without friction, so it is clearly regulated to respond to new technologies that are effective. I believe it is a safe place for you. He wants clarification of regulations on Stablecoin, which is treated as a security.
“I also want to ask for clarity about custody, because it allows us to clarify the solution and the rights people have if things go wrong,” he said. Added. “I think these are places where we can make progress for the industry and regulators.”
At the Bloomberg Cryptographic Summit, recent events such as the collapse of algorithm stablecoin and crypto hedge funds provide consistency in disclosure requirements, etc. He said it represents a regulatory framework, which will give more certainty to customers and investors.
At the same time, the financial system will benefit from the 24/7 payments available in the crypto market, reduced friction from intermediaries, and the ability to create immutable records.
Thank you, @BloombergLive When @allyversprille.. looking forward to it! @coinbase https://t.co/TvYoWiScyT
— Culvert (@karacalvert) July 4, 2022
“Transparency is really important,” she added. “We are very much looking forward to seeing the regulatory framework come together and are optimistic.”
She believes there are many responsible regulatory opportunities over the next six months and agrees that Stablecoin is an area of widespread consensus.
“The advantage of having a really efficient and immutable payment system is good for consumers,” she added.
Gillibrand-Lumis Bill
Culvert praised the work done by Senators Cynthia Lummis and Kirsten Gillibrand at the legislative level.
On June 7, 2022, Senator Gillibrand (D-NY), a member of the Senate Agricultural Commission, and Lumis (R-WY), a member of the Senate Banking Commission, joined forces on a complete regulatory framework for digital assets. Introduced Responsible Financial Innovation Act to create. .. Senators said at the summit that the entire bill is unlikely to be passed in 2022, but some can vote. This year – jurisdiction, etc. Commodity Futures Trading Commission About digital assets that are considered commodities and how banks issue stablecoins.
Clayton agreed Responsible Financial Innovation Law Both Senators are very responsible efforts as they focus on some key issues such as storage and resolution, which are the basis of all market regulations, and seek a collaborative approach.
US stablecoin law may come this yearhttps://t.co/61rccNloBs
— Markets Media (@marketsmedia) July 19, 2022
“This bill does a very good job of saying that the entire US securities law should move towards a technology-agnostic definition of proper custody,” he added.
The European Union recently agreed with MICA, a market for crypto asset frameworks, and Culvert said the United States risks lagging behind other jurisdictions when it comes to regulating new global asset classes. She explained that Coinbase is a global company that complies with the regulations of many jurisdictions, so it employs some global best practices based on foreign regulations.
“So it’s really important for us to get some harmony,” she added. “We need a consistent and equal competition to ensure that all companies, not just Coinbase, comply with the same high standards known in the United States.”
Calvert has been working at Coinbase since 2016, but says the company has been advocating regulations since 2012.
“We started talking about how regulation is needed, but the industry doesn’t hear much,” she added. “It’s very unique to actually go to the regulator and seek a framework that unleashes innovation.”
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