Former Securities and Exchange Commission Chairman Jay Clayton joins Fireblocks, a $2 billion Israel-based cryptocurrency custodian that focuses as an advisor.
The appointment represents the moment of cryptocurrency-focused engagement for the former regulator, following his appointment in March 2021 as a board member of One River Asset Management, which recently filed a carbon-neutral Bitcoin ETF application with the SEC.
At Fireblocks, which will be the first natural crypto establishment on its resume, Clayton will advise the firm through the legislative landscape of conversion in the U. S. USA And overseas, and it will expand the overall security posture for the fast-growing company.
The corporation has grown from one hundred clients to 500 in the area of a few months in sectors such as cryptocurrency trading, cryptocurrency retail, and classic monetary institutions. Since its inception in 2019, Fireblocks has acted as custodian of more than $1 trillion in virtual. Additionally, with a focus on giant institutions, Fireblocks is the kind of company one would expect Clayton to sign up for after his tenure at the SEC, which has taken a conservative stance and unfavorable to the threat to the developing crypto industry while opening up to the prospect of blockchain technology to increase the transparency and power of the monetary system.
“I’m very positive about the ability of blockchain and other technologies to remove friction in the system,” says Clayton. “You’ll get greater, more secure movement and custody as we integrate blockchain generation into our monetary ecosystem. “
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The expansion of Fireblocks has materialized with an overall maturation of the industry and an increase in valuations that have noticed that the value of bitcoin is successful at an unprecedented high above $64,000 and the overall market capitalization of all crypto assets exceeds $2 trillion. obstacles ahead.
Aside from bitcoin and ether, the SEC has yet to make a final decision on whether other local virtual assets like NFT and DeFi tokens are securities.
With the constant uncertainty surrounding the classification of many virtual assets, Clayton says Fireblocks is in a position to respond to any effect on the 700 assets supported through the platform.
“I know that [Fireblocks CEO Michael Shaulov] and his colleagues are committed to regulatory compliance,” he says. “So to the extent that the SEC determines that the industry’s secure virtual assets on platforms are securities and deserve to be regulated accordingly. , I surely perceive it. “
Still, some industry experts and outdoor observers would possibly place Clayton concerned at some other unexpected crypto firm given the SEC’s cautious technique for the booming industry under his tenure. President Gary Gensler to succeed Clayton, as he had definitively testified on blockchain before Congress and even taught courses on the subject at the Massachusetts Institute of Technology. However, Clayton is satisfied with the way the SEC treated cryptocurrencies in his presidency.
“What other people want to perceive is that the authority of the Commission is explained through the law and the regulations enacted,” Clayton adds. “The women and men of the Commission are doing the right job of matching those obligations with the advent of virtual securities offerings and letting other people know that virtual securities offerings and trading will have to adhere to the same regulations as classic paper securities trading, which along the way, has in many purposes largely virtual in itself.
He also highlighted the tactics in which the regulator seeks to move the industry forward.
“One of the last things the president’s task force did while I was at the SEC a report on solid currencies, considerations for solid currencies, adding when solid currencies wouldn’t be securities and following these kinds of cross-agency paintings would be something useful for our monetary ecosystem,” he says. I hope progress continues. “
Finally, by signing up for his cryptocurrency-related business, Clayton fosters a trend of former officials and regulators who engaged with the industry after moving into the personal sector. Recent former regulators who have joined the developing industry come with Ben Lawsky, who went from being New York State’s first superintendent of money services, regulations on crypto licensing, to advising Bitcoin funds.
Clayton also preceded former Commodity Futures Trading Commission Chairman J. Christopher Giancarlo, who went from regulating the classification of virtual assets to writing a report on behalf of Ripple, the largest holder of XRP, which is lately being sued through the SEC in December 2020. for an alleged sale of unregistered securities of $1. 3 billion. He is also co-founder of the Digital Dollar Project, an initiative that aims to publicize studies on the creation of a sovereign virtual currency in the United States.
I am the Director of Digital Asset Research at Forbes and recently Social Media/Copy Lead at Kraken, a US-based cryptocurrency exchange. USA
I’m the Director of Virtual Asset Studies at Forbes. I was recently a copy / social media leader at Kraken, a US-based cryptocurrency exchange. Before joining Kraken, I served as COO at the Wall Street Blockchain Alliance, a non-profit industry agreement committed to the full adoption of cryptocurrency and blockchain technologies in global markets. Emerging technology practice at Spitzberg Partners, a business consulting firm that advises leading corporations in all industries on blockchain technology. Previously, I was Vice President / Chief Analyst of Strategy at Citi FinTech, where I led strategic progression and business progression projects for Citigroup’s global client and retail banking operations in 20 countries. I also served for five years as a Senior Intelligence Analyst at Booz Allen Hamilton, US Department of Defense. I have a B. S. in Business Administration from the Tepper School of Business at Carnegie Mellon University and an MBA in International Affairs from the School of Public and International Affairs at Columbia University. Additionally, I am a Certified Information Privacy Professional (US, Canada, and European Union) and a Certified Information Privacy Technologist at the International Association of Privacy Professionals (IAPP).
I am a wealth checker at Forbes, founded in New York. Before joining Forbes, I was at the same speed for Private Asset Management. I also covered the audience
I am a wealth controller at Forbes, founded in New York. Before joining Forbes, I was on the same speed for Private Asset Management. I also covered public policy and compliance for Compliance Reporter and the automotive industry for the New York Daily News. A long time new Yorker, I earned my master’s degree from the Craig Newmark Graduate School of Journalism at the City University of New York. Email your concepts and tips to JBisnoff@Forbes. com. Follow me on Twitter in @JBisnoff.