Funding supervisor One River Asset Administration, a $2.5 billion agency, hired former Securities and Trade Fee (SEC) chair, Jay Clayton, as an adviser to its crypto-oriented subsidiary One River Digital Asset Administration.
Clayton served as SEC Chairman underneath the Trump administration from Might 2017 till the top of 2020. Throughout his tenure, the SEC blocked a number of makes an attempt of varied funds suppliers to launch Bitcoin exchange-traded funds (ETFs). Nonetheless, the monetary watchdog determined that Bitcoin and Ether – the 2 largest cryptocurrencies by market cap – weren’t securities, which left the door open for a wider adoption amongst institutional buyers.
Now Clayton is advising the crypto fund backed by hedge fund billionaire Alan Howard and is supporting the digitization of the financial and capital ecosystem.
One River’s Advisory Council Additionally Embody Former Trump and Clinton Administration Officers
One River Digital has just lately shaped the Educational and Regulatory Advisory Council to guide its crypto funding efforts. Moreover Clayton, it additionally contains Kevin Hassett, former chairman of the Council of Financial Advisers underneath President Donald Trump, and Jonathan Orszag, who labored within the Clinton administration.
The brand new council will assist One River founder and CEO Eric Peters, who embraced digital belongings on the finish of final 12 months. He raised funds from Howard and Ruffer LLP to purchase Bitcoin and Ether via his crypto-oriented subsidiary.
Clayton stated that he loved discussing cryptocurrencies from the opposite aspect of the desk and admitted that he would have by no means predicted that digital belongings can be embraced by revered buyers so rapidly. He stated:
“The digitization of our monetary ecosystem isn’t simply is coming, it’s already right here. Three years in the past, I didn’t imagine we might be the place we’re right this moment — the variety of revered buyers who’ve embraced digital belongings. I might not have predicted this degree of take-up.”
One River has been buying Bitcoin since November final 12 months, when the worth was at round $15,000. Final November, it carried out one of many largest public transactions with the cryptocurrency, because the hedge fund amassed $600 million in Bitcoin.
SEC Commissioner Apprehensive About Regulator’s Although Stance on Pending Bitcoin ETFs
Whereas the SEC has been harsh on preliminary coin providing (ICOs), Bitcoin ETF purposes, Ripple’s XRP distribution, and the crypto market typically, not all workers members are crypto-averse. For instance, SEC Commissioner Hester Peirce has brazenly expressed her assist for digital belongings on a number of events. The crypto neighborhood even nicknamed her “Crypto Mother.”
Yesterday, she informed Forbes that the SEC was late with the approval of a Bitcoin ETF, which has its penalties. Peirce said:
“My view has been that we’re overdue on approving one in all this stuff. I additionally suppose we’ve dug ourselves right into a little bit of a troublesome gap by setting requirements for approval which might be troublesome to determine easy methods to fulfill.”