Former US Securities and Exchange Commission (SEC) Chairman Jay Clayton said in an interview with CNBC that the courts are not the place to deny or recognize crypto assets as securities.
Jay Clayton shared his opinion that “any security today may no longer be considered as such tomorrow”:
“All securities may cease to be so, and the courts are unlikely to be an effective forum for resolving disputes about security classifications and the like.”
Commenting on his statement, Clayton noted that the Howey test is a better way than the courts to determine whether a cryptoasset is a security by looking at how it is traded.
The former head of the SEC noted that in his personal opinion, “current offers and sales of ether (ETN) do not constitute securities transactions.”
“Broadway tickets received for investing in a play that has yet to be produced will be securities. However, tickets purchased years later to see a completed show will not be accepted. I agree with Gary Gensler that securities can cover a very wide range of cryptocurrencies. However, the sale of ether has many more signs of being just a ticket than a fundraiser and a security,” he added.
Earlier, SEC Chairman Gary Gensler spoke about the promotion of cryptocurrencies and hinted that ether may face increased regulatory scrutiny.
