Outgoing SEC Chairman Jay Clayton who supervised the rejection of nine Bitcoin exchange-traded funds during his tenure, told CNBC that Bitcoin’s success continues to be powered by “inefficiencies” in existing payment structures.
Clayton, who is expected to step down by the end of the year, appeared on the CNBC’s Squawk Box on Thursday 19, 2020, stated his general evaluation of his department that Bitcoin is not a security but a payment system and value storage.
The chairman has been strongly criticized for holding a tight rein on Bitcoin and cryptocurrency by the Bitcoin community. Clayton, however, was never a staunch opponent of Bitcoin in principle during his years as SEC chair, but constantly discussed his concerns that regular investors could be subjected to unnecessary risk while investing in a Bitcoin ETF.
This threat is attributable to the assumption by the SEC that the relatively uncontrolled nature of certain Bitcoin exchanges makes it too easy to control the price of BTC. With Clayton out as SEC chair, some Bitcoin supporters claim that the probability of approving a Bitcoin ETF is now higher than ever.
According to cointelegraph.com, in January 2017, President Donald Trump named Clayton for the SEC Chair and is leaving the position as one of the longest-serving chairs of the department. In June 2020, Trump nominated Clayton to replace the outgoing United States Attorney for New York’s Southern District, a position he claims he pursued out of a deep desire to pursue his public service career.