Bitcoin is means of payment and store of value, says SEC chairman

Key facts:

The president of the SEC made clear the status that bitcoin has for this body.

There are those who believe that, after his resignation, ETFs with bitcoin could be a reality.

“We determined that bitcoin was not a security, but was much more a means of payment and a store of value,” said Jay Clayton, president of the Securities and Exchange Commission of the United States (SEC, for its acronym in English). ) in dialogue with the television network CNBC.

Clayton also assured that “current means of payment have inefficiencies and those inefficiencies are what are driving the increase in bitcoin.” For this reason, this 54-year-old lawyer is convinced that regulations will have to evolve to adapt to the increase in the adoption of cryptocurrencies.

The fact that bitcoin is not considered a security implies that it is not under the regulatory control of the SEC and, therefore, the cryptocurrency cannot be part of some financial products such as, for example, ETFs (exchange-traded investment funds).

half payment reserve value

half payment reserve value

Before leaving his position, Clayton made clear the status that bitcoin has for the entity that he presides over. Source: SEC / Wikipedia

As the SEC explains, ETFs are funds that make investments in various assets. In return, investors receive interest generated by the group.

Although he was highly criticized by the bitcoiner community for trying to regulate the use of cryptocurrencies, the official, who will leave his post at the end of the year, never declared himself an enemy of this form of money. As he explained on numerous occasions, his motivation to regulate bitcoin intensely was the fear that investors would submit to the “unnecessary risks” involved in having this asset in an ETF.

Will bitcoin ETFs be possible after Clayton resigns?

During Clayton’s tenure as head of the SEC, this body rejected nine projects to create a bitcoin ETF. There are those who believe that, after his resignation, this financial product will finally be available to investors. Among them is Bloomberg Intelligence strategist Mike McGlone, who tweeted about it in early October:

“A possible Biden presidency should favor a further appreciation in the price of bitcoin. New leadership can change the Trump administration’s hands-off policy, which is detrimental to the broader crypto market, and push bitcoin into the mainstream, improving the chances of an ETF. “

Mike McGlone, senior commodities strategist at Bloomberg Intelligence.

In addition to opposing ETFs that include bitcoin, Clayton was the first SEC member to, as CriptoNoticias reported, issued warnings on initial coin offerings (ICOs) in 2017. Those products, being considered securities offerings, do they must be registered with the SEC and many of them did not meet that requirement.