Former SEC Chairman Jay Clayton and former CFTC Chairman Tim Massad proposed a proposal for regulating cryptocurrencies in the United States in a Wall Street Journal article, “A Path Forward to Regulate Crypto Markets.” They believe that enforcement actions are part of the solution and that more needs to be done to protect investors and market integrity.
The SEC, under current Chairman Gary Gensler, is following a path set earlier by Jay Clayton, who filed a lawsuit against Ripple before his term ended in December 2020.
“…Enforcement actions, by themselves, are unlikely to rapidly and significantly improve investor protection and market integrity.”
Ripple (XRP) and Cardano (ADA) are leading the crypto community in lambasting Jay Clayton’s proposed path to crypto regulation. Cardano influencer Dan Gambardello said Jay Clayton is acting like he cares about crypto now when he actually doesn’t care as the SEC chairman.
XRP lawyer John E. Deaton believes that Jay Clayton has well-known commissioners Elad Roisman and Hester Pierce, who have knowledge of cryptocurrencies and voted to provide regulatory clarity. However, he failed to provide a way to promote innovation and failed to take real measures to protect investors at the time.
“But Jay Clayton, like Bill Hinman, was more interested in leveraging his position and maintaining an opaque regulatory environment. After leaving the SEC, Clayton immediately joined One River and began to get involved in the digital asset field, while his friend Hinman joined the a 16z organization,” Deaton said.
Tony Edward, host of the Thinking Crypto podcast, also criticized Jay Clayton for talking about enforcement actions that are "unlikely to improve investor protection." He claimed that Clayton filed a lawsuit against Ripple in his last days at the SEC and hurt retail investors who hold XRP. In addition, he did not approve a spot Bitcoin ETF or Congress to pass clear regulations.
XRP holders are awaiting summary judgment in the SEC vs. Ripple case, and Ripple CEO Brad Galinghouse and CLO Stuart Alderoty are confident of a win in the lawsuit. The community has expressed concerns about Judge Torres’ delay in issuing a summary judgment.
XRP prices have been trading mostly sideways this week, up 0.5% in the past 24 hours and currently trading at $0.46. Market cap and trading volume have also remained flat in the past 24 hours. CoinGape reported earlier that XRP prices could rise by 600% following the verdict.
