Jay Clayton, the chairman of the Securities and Exchange Commission, said contrary to speculation, the SEC does not believe that all initial coin offerings are fraudulent. “Absolutely not,” Clayton said when asked if the SEC’s recent crackdowns on ICOs signals such a stance. Clayton made the remarks during a speech on “Cryptocurrency and Initial Coin Offerings” at Princeton University on April 5.
Clayton said stamping out fraud in the crypto market is critical to protect consumers. He also said increased regulatory scrutiny will actually benefit the industry by ridding it of fraudsters and scam artists who give the entire space a bad name.
And driving out bad actors early on will ensure that the government won’t eventually adopt such a hard-line stance that it will effectively choke off the budding industry, Clayton reasoned.