Outgoing Remark by SEC Chairman: Bitcoin is Confirmed Not a Security, It is a Store of Value Tool
The Chairman of the Securities and Exchange Commission (SEC) Jay Clayton reiterated the agency's stance on Bitcoin in a recent interview, stating that Bitcoin should not be classified as a security for regulatory purposes, but rather as a payment mechanism and store of value. Michael Saylor, the CEO of MicroStrategy who has recently become a Bitcoin evangelist, also retweeted this news and once again praised Bitcoin.
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We Confirm Bitcoin is Not a Security
During an interview on CNBC's Squawk Box today, 11/19, SEC Chairman Jay Clayton shared his views on this emerging asset, stating:
We do not regulate Bitcoin as a security, and we have confirmed that it should not be classified as such. It leans more towards being a payment mechanism and a store of value. Of course, the government should regulate payment systems, and we will see more related regulations in the payment field in the future.
Despite the rise of mobile payments in recent years, Clayton pointed out:
Our current payment mechanisms are inefficient, which is what has driven the rise of Bitcoin.
Michael Saylor, CEO of MicroStrategy, who gained fame by boldly investing the company's reserve assets in Bitcoin due to long-term currency inflation, quickly retweeted this news and commented:
This is why Bitcoin should not be solely classified as currency or a payment network. In the spirit of humility and harmony, we should allow developers to provide such payment mechanisms and cooperate with the government in the realm of currency. Bitcoin is a programmable store of value.
This is why #Bitcoin should be neither a currency, nor a payment network. The principles of humility & harmony dictate that we should allow technology partners to provide for payments, & defer to governments on matters of currency. $BTC is a purely engineered Store of Value. https://t.co/nvYGolSyQx
— Michael Saylor⚡️ (@saylor) November 19, 2020
Stepping Down as Chairman by Year's End
During Jay Clayton's tenure, the SEC experienced the most fervent period of cryptocurrency fundraising, including the ICO, STO, and DeFi crazes. Many scams and entities violating securities laws were strongly enforced by the SEC, and Bitcoin ETF proposals from institutions like VanEck were repeatedly rejected and have not been approved to this day, causing the Bitcoin ETF to gradually lose momentum.
With President-elect Biden expected to nominate the next SEC Chairman, the future proactive actions regarding relevant regulations remain to be seen.