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Previous chairman of the U.S. Securities and Exchange Commission, or SEC, Jay Clayton, was delegated by ex-President Donald Trump to serve in 2017. In his tenure as head of the SEC, Clayton often defended Bitcoin (BTC) as a store of significant worth. This previous Wednesday, during a interview with CNBCs Squawk Box show, Jay shared his musings on digital currency and how it ought to be directed going ahead. The previous SEC seat said that he is a huge believer in crypto technology and that its productivity benefits in the financial system and tokenization are enormous.

When asked whether the present chairperson is creating too many restrictions for the crypto industry, Jay said that cryptocurrencies have numerous purposes and are connected to a variety of industries, and the SEC should be in charge of regulating only those sectors that are linked to it.

Claytons remarks come as the current SEC chair, Gary Gensler, recently confirmed that the watchdog has no plans to ban crypto, but that U.S. congress could. Gensler warned, however, that crypto in its current form is comparable to the wild west without proper regulation.

Crypto is a wide variety of products, with a wide variety of functions, and the rules of our financial system are clear and long-standing. If you are raising capital for a project, you have to register your capital raising with SEC. If you are trading securities it has to be on a registered venue, But there are many crypto sectors like stablecoins that are not securities and outside of SEC purview.

Clayton did not allow the approval of a Bitcoin ETF during his term, which occurred now in 2021 under Gary Gensler. The agency has since come under fire for rejecting spot ETF applications and approving Bitcoin futures ETFs. Grayscale submitted a letter to SECs secretary, Vanessa Countryman, in which it stated that there is no basis for the position that investing in derivatives for an asset is acceptable for investors but not investing in the asset itself. The SEC was accused of treating the two Bitcoin ETF proposals unequally under the Administrative Protections Act, or APA.

According to Clayton, cryptocurrencies should be implemented but with appropriate regulation. He said that the government should be reactive to people who are violating our well-defined laws but proactive in encouraging the adoption of this technology throughout our financial system.

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