Former SEC Chair Behind Ripple Lawsuit Blames Cryptocurrency Exchanges, Not Blockchain

Former SEC Chair Behind Ripple Lawsuit Blames Cryptocurrency Exchanges, Not Blockchain

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Alex Dovbnya

Jay Clayton, former Chairman of the US Securities and Exchange Commission (SEC), distinguishes between the technology that underpins the world of cryptocurrencies and the behaviors of certain exchanges.

Jay Clayton, the former chairman of the Securities and Exchange Commission (SEC) and the man behind Ripple’s ongoing lawsuit, has publicly stated criticized the behavior of the main cryptocurrency exchanges, Binance and FTX, in a recent interview with Bloomberg.

Addressing the recent lawsuits against these platforms, Clayton denounced what he called “reprehensible behavior,” but stressed that this does not reflect badly on the technology that powers these platforms: blockchain.

Earlier this week, in a separate interview Speaking with CNBC, Clayton highlighted the differences between the charges against Binance and Coinbase. The former, he explained to her, is more related to allegations of fraud and evasion, while the Coinbase situation revolves around the ongoing debate over what constitutes a security and what doesn’t.

Furthermore, he commented on the need for cryptocurrency platforms to comply with existing securities laws, suggesting that the financial world is unlikely to “bow down” to the innovation that cryptocurrencies bring.

Drawing parallels between the crypto industry and the gig economy, he described the former’s playbook as one that assumes innovation would overcome regulatory resistance, a notion he questioned. He posited that the perceived value of cryptocurrency companies may have inflated under the impression that they were leading a financial revolution, a sentiment that he claimed may be waning.


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