Jay Clayton, the chairman of the Securities and Exchange Commission (SEC), said contrary to what most in the crypto space believes, the SEC does not think that all initial coin offerings are scams.
“Absolutely not,” Clayton said when asked if the SEC’s recent clampdown on ICOs is a sign of their where they stand with regards to the matter. Clayton made the assertion during a recent talk that he made on “Cryptocurrency and Initial Coin Offerings” at Princeton University.
Clayton claimed that eliminating fraud in the crypto market is crucial to safeguard consumers and their assets. He also said more stringent regulatory scrutiny would actually benefit the industry by pushing out scam artists who actually deny the space its legitimacy.
And driving out bad actors as early as possible would guarantee that the government would not embrace an inflexible stance that would effectively choke out the emerging industry, Clayton explained.