Before Jay Clayton was sworn in as the 32nd chairman of the U.S. Securities and Exchange Commission on May 4th, 2017, he was a co-managing partner at Sullivan & Cromwell, regularly representing the interests of distinguished Wall Street firms. He focused his practice on merger and acquisitions transactions in addition to capital market offerings.
He has been pegged by many as the world’s first “cryptocurrency cop” and is frequently heralded as a crypto-sceptic. He has addressed various securities law issues regarding digital currency, initial coin offerings, and distributed ledger technology.
“What investors expect is that trading in the commodity that underlies that ETF makes sense and is free from the risk of manipulation,” Jay said at the Consensus Invest Conference, as reported by CNBC. “It’s an issue that needs to be addressed before I would be comfortable.”
He has prioritized ensuring that many of the products in the cryptocurrency space fall under the SEC’s purview, so the federal agency can possess the ability to regulate them. He has pushed this to the front of his agenda, referencing the importance of protection for investors.
“We’ve seen some thefts around digital assets that make you scratch your head,” Jay explained. “We care that the assets underlying that ETF have good custody, and that they’re not going to disappear.”