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How the inefficiencies of the current payment system will drive bitcoin adoption according to Jay Clayton of the SEC

How the inefficiencies of the current payment system will drive bitcoin adoption according to Jay Clayton of the SEC

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  • It was announced earlier this week that the chairman of the securities and exchange commission in the United States, Jay Clayton he’s getting ready to step down from his position in 2021. 
  • During his time as chair, Clayton looked over the rejection of nine exchange-traded funds for bitcoin (ETF). 

It was announced earlier this week that the chairman of the securities and exchange commission in the United States, Jay Clayton is getting ready to step down from his position in 2021. During his time as chair, Clayton looked over the rejection of nine exchange-traded funds for bitcoin (ETF). More recently, he said that the “inefficiencies“ of the current payment system is driving the adoption and acceptance of cryptocurrency such as bitcoin.

Recently taking part in an interview with CNBC, Clayton confirmed that the SEC and their general assessment was that bitcoin was not a security but a mechanism for payments as well as a store of value. A clip was posted to Twitter which you can see below:

Over the years, the bitcoin community has significantly criticised Clayton and his approach to the industry of crypto. That being said, he was never a direct opponent of what the currency stood for but has been very vocal about his worries about what retail investors could be exposed to in the numerous risks that come from bitcoin investment. This is why it is so important to do your own research when investing in an asset such as bitcoin.

The securities commission is of the mind that due to the unregulated nature of many platforms within the industry, it can make the price of bitcoin too easy to be manipulated. As Clayton is now stepping down from his role as chairman of the SEC, many people within the industry predicted that it can only go up from here when it comes to a bitcoin ETF being approved by the regulator.

But as regulations grow and evolve, so will bitcoin according to Clayton.

He has 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... And we’re gonna see more of that. We’re gonna see this mature and we’re gonna see more regulation around the digital payment space.

For more news on this and other crypto updates, keep it with CryptoDaily!

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