Jay Clayton, Securities and Exchange Commission (SEC) Chairman since January 2017, made a recent statement which featured positive reception throughout the larger security token community. Clayton advised that the SEC is strongly open to new ways in which smaller firms can acquire capital and consequently cultivate a successful business.
Increased Access to Capital
Clayton’s message, which focused on capital formation, was delivered at the Nashville 36|86 Entrepreneurship Festival in late August, 2018. The theme was clear: “The SEC should be keenly focused on helping small businesses from coast to coast access capital to grow, create new jobs, and, in turn, provide investors, including our Main Street investors, expanded investment opportunities.”
The Digital Assets Market
His further comments strongly indicated support for the forthcoming digital assets market. It is clear to see that security tokens could become at least one way in which such a vision can be actualized.
As Clayton said,
All-in-all, Clayton emphasized that the SEC is more than willing to help businesses— especially small businesses— who seek to raise capital. However, they simply must follow the law. There is no surprise here, as Clayton is known to emphasize the successful history of the SEC’s implementation of legislation when questioned about the future regulation of distributed ledger technology.
The Benefits of IPO Compliance
Ultimately, in terms of the general IPO market and its regulations— which are popularly characterized as stringent— Clayton’s remarks reflected an undoubtedly positive outlook for both investors and businesses.
What do you think are the biggest obstacles in terms of security token regulation by the SEC? What steps need to be taken in order to provide an adequate solution? We’d love to see what you have to say below!
Image courtesy of Fintech World.
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