Former SEC Chairman Jay Clayton has reiterated his position that many cryptocurrencies could be defined as securities, even as the crypto industry continues to combat the U.S. Securities and Exchange Commission over the regulator’s prohibitive stance toward the industry.
“I’ve said this for a long time: I think the market has evolved, but many, if not the vast majority, of the tokens that were sold for cash would fall within the definition of a security in America,” Clayton, now a senior policy advisor and counsel at Sullivan & Cromwell LLP, said at the R3 CordaDay conference on Wednesday.
The definition of a security is “intentionally broad and flexible,” Clayton noted. But, he added that there’s a chance that something once labeled a security, “might not always be a security.”
So what could cause that shift? Present utility versus future utility, Clayton said.
‘Enforcement 40’ for 2020
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