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Jay Clayton said the SEC’s door is “wide open” to those who want to learn and understand how to “tokenize the ETF product in a way that adds efficiency.”
United States watchdogs, the Securities and Exchange Commission (SEC) and the Office of the Comptroller of the Currency (OCC) has provided key answers to some regulatory myths in the blockchain and cryptocurrency ecosystems hampering growth while restating commitments to aid the growth of the ecosystem. As reported by The Block, both the SEC and the OCC made this known through their leaderships in a webinar organized by the Chamber of Digital Commerce and held on October 2 tagged “Two Sides of the American Coin: Innovation & Regulation of Digital Assets.”
The webinar was exclusively slated to help address the core hurdles blockchain and cryptocurrency entities face that hampers their growth. According to the SEC, represented by Jay Clayton, the application of blockchain technology may soon be drafted to tokenize all securities in U.S. markets one day.
As reported, Clayton said the SEC’s door is “wide open” to people or anyone who wants to learn and understand how to “tokenize the ETF product in a way that adds efficiency.” Clayton addressed concerns about insufficient regulations to help drive the growth of blockchain technology and cryptocurrencies. On this, Clayton noted that “the short answer is yes,” adding that the “regulatory framework, the principles of our framework, is time tested, and it’s been time-tested through many innovations.”
With the OCC playing a foremost role in getting Bitcoin (BTC) regulated as far back as 2015, the firm’s commitment to helping in leveling the playing ground for all actors has not yet waned. “We have a strong interest in trying to envision a medium-term future, not a tomorrow future where people are speculating on bitcoin price movements, but a medium-term future where these blockchain networks that have been built are basically the internet of finance…are kind of a mind-blowing challenge to the banking model,” said Brian Brooks, the acting comptroller of the currency at the Office of the Comptroller of the Currency (OCC).
Brooks noted that though many cryptocurrency projects who have no strong fundamentals and specific service offerings will fail, he is certain that the OCC will continue to support projects which add value to the ecosystem.
While other aspects of controversy touched during the webinar include the place of stablecoins, Clayton provided a better clarity of what constitutes a security. He stated:
“If you’re not trying to finance your network, you’re not trying to give people a return on your network, it’s probably not a security. But if what you’re trying to do is finance your network with your token or provide people with a return for using the network with your token, you look at the traditional tested security, it’s pretty clear it’s a security.”
SEC, OCC Could Spark a New Growth in Blockchain Adoption
The continued show of interest from the SEC, OCC, as well as other U.S. watchdogs, could set a good precedent for other regulations beyond the U.S. borders to look positively into functional and produced blockchain and crypto regulation.
While the activities of the SEC and the OCC have stirred increased applications from emerging blockchain startups, such words of affirmation to see a blockchain growth can cause more massive interests in the near future.