SEC Chair’s Recent Comments on Digital Assets
Securities and Exchange Commission (“SEC”) Chairman Jay Clayton touched on digital asset issues during two recent appearances. On June 4, Chairman Clayton addressed the Mid-Atlantic Regional Conference, where he noted the work of SEC staff to trace transactions across blockchains. Specifically, he mentioned that tracing was critical in two recent cases where the SEC was able to obtain preliminary injunctions to stop alleged potential frauds.
On June 6, Chairman Clayton appeared on CNBC, where he discussed virtual currency exchange-traded funds (“ETFs”). He stated that the SEC is engaging with those seeking ETFs but that core issues, such as custody of digital assets and prevention of market manipulation, continue to be sticking points that the SEC is working through. Continue Reading