In a recent interview on CNBC's Squawk Box, former SEC Chairman Jay Clayton provided his insight into the ongoing debate about whether Ethereum (ETH) should be considered a security.
This comes after Clayton himself brought a lawsuit against Ripple during his tenure, alleging that the company had conducted an unregistered securities offering.
During the interview, Clayton discussed the approach taken by European regulators toward cryptocurrencies, highlighting their willingness to incorporate the technology into the regulatory system.
He pointed out that the current method of relying on the courts to resolve classification issues around securities and commodities is inefficient. Clayton also agreed with current SEC Chairman Gary Gensler that a significant portion of cryptocurrencies could fall under the purview of securities.
Tomiwabold OlajideHowever, once the play becomes successful and tickets are sold at the box office, they are no longer securities but merely tickets. Applying this logic to Ethereum, Clayton suggested that it has more characteristics of a "ticket" than a means to raise money, though he admitted that he did not know all the facts surrounding the matter.
The debate surrounding Ethereum's regulatory status is ongoing. While Gensler has repeatedly dodged questions about the second biggest cryptocurrency, he has repeatedly implied that all proof-of-stake coins are securities.
Arman Shirinyan
Vladislav Sopov
Dan Burgin
U.Today Editorial Team