Chairman of U.S. Securities and Exchange Commission (SEC), Jay Clayton, is geared to vacate his post after being nominated by the country’s president Donald Trump to serve as the next U.S. attorney for the Southern District of New York.
According to the press release from the U.S Department of Justice, Clayton has been nominated to assume the attorney’s role despite the fact that his term of office as SEC chairman was supposed to expire in 2021.
The crypto community seems excited about his departure as they speculate how the change will affect the crypto industry. Some believe he has been the barrier to the approval of a bitcoin exchange-traded fund (ETF) by the SEC.
During his term of office, all proposals for a bitcoin ETF have been rejected. He being a bitcoin sceptic said last year that, he does not see the crypto trading on a major exchange until it is better regulated. He had concerns such as the difficulty of price discovery for investors trying to cash in their crypto.
Jake Chervinsky, the general counsel at Compound stated that the SEC chair is one of the most important U.S. officials for crypto regulation. According to him, the chairman’s replacement will have either a positive or negative impact on the industry. He added that, chances of ETF approval and clarity now hangs in the balance.
Mike Novogratz, billionaire investor and Galaxy Digital CEO also believes that Clayton’s replacement is good for the crypto industry. He said this move will make approval of ETF more likely, especially if Clayton’s successor is a futurist.
Founder of Techcrunch, Cruchbase and Arrington XRP Capital, Micheal Arrington also commented that whatever else, Clayton leaving the SEC is a win for crypto and sound money fans across the world. According to him, Clayton has done much damage to the crypto industry.