SEC head linked BTC rally to problems of traditional payment

by in Cryptocurrency News

Jay Clayton

According to the chairman of the US Securities and Exchange Commission (SEC), Jay Clayton, the rapid rise in the value of bitcoin is directly related to the weakening of people's interest in traditional payment systems. The head of the regulator expressed this point of view in an interview with CNBC.

Clayton stressed that the largest digital currency has some advantages over other instruments. First of all, this concerns the format of using BTC.

Cryptocurrencies can be used not only as a means of preserving capital but also as a payment instrument.

At the same time, the SEC chairman recalled that Bitcoin is not classified as a security. This instrument can most likely be defined as a store of value and payment.

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That is where it differs from traditional payment mechanisms. The same property of an asset is its main advantage, which provoked such a surge of interest in it from investors.

Clayton added that digital assets are increasingly being used in business. Many startups even attract investment through token offerings. However, many ICO projects, as 2017 showed, turned out to be faked. Therefore, putting things in order in this area is necessary.

Note that Jay Clayton will leave the post of chairman of the SEC by the end of 2020. He has this position since May 2017.