SEC's Clayton Says Payment Inefficiencies Are Boosting Bitcoin's Rise

Clayton sounded more bullish on bitcoin than he's been in years in his Thursday interview with CNBC.

AccessTimeIconNov 19, 2020 at 4:27 p.m. UTC
Updated Sep 14, 2021 at 10:32 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Sounding more bullish on the cryptocurrency than he has in years, U.S. Securities and Exchange Commission Chairman Jay Clayton said Thursday the inefficiencies of modern payment systems are "driving the rise of bitcoin."

  • Speaking on CNBC, Clayton, who's stepping down at the end of the year, said: "What we are seeing is that our current payment mechanisms domestically and internationally have inefficiencies. Those inefficiencies are the things that are driving the rise of bitcoin."
  • Bitcoin was trading a tick below $18,000 at press time Thursday as the bull run continues to drive the cryptocurrency near all-time highs.
  • Clayton rebutted interviewer Andrew Ross Sorkin's suggestion that bitcoin could ever be regulated as a security. Bitcoin "was much more a payment mechanism and stored value" than a security, he said.
  • That doesn't mean the SEC is comfortable with the crypto quite yet. Under Clayton, the SEC has repeatedly blocked a number of potential bitcoin exchange-traded funds from launching.
  • Clayton nevertheless seemed to echo JPMorgan Chase CEO Jamie Dimon's Wednesday prediction that regulators would eventually come knocking as bitcoin continues to grow.
  • "I think we're going to see this mature and I think we're going to see more regulation around the payments space," he said.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.