Former U.S. Securities and Exchange Commission (SEC) Chairman Jay Clayton told CNBC in an interview that the courts are not the place to deny or recognize crypto assets as securities.
Jay Clayton opined that “any security today may no longer be considered a security tomorrow”:
“All securities may cease to be such, and the courts are hardly an effective place to decide disputes about the classification of securities and the like.”
Commenting on his statement, Clayton noted that the Howey test is the best way compared to the courts to determine whether the crypto asset under investigation is a security: it is enough to look at how it is sold.
The former head of the SEC noted that in his personal opinion, “the current offerings and sales of ether (ETH) are not securities transactions.”
“Broadway tickets received for investment in a play that has yet to be staged will be securities. At the same time, tickets purchased years later to see an already finished show will not be available. I agree with Gary Gensler that securities can cover a very wide range of cryptocurrencies. However, the sale of ether has far more indications that it is just a ticket than a fundraiser and a security,” he added.
Earlier, the chairman of the US Securities and Exchange Commission, Gary Gensler, spoke out about the promotion of cryptocurrencies and hinted that the ether may face increased attention from regulators.