Blockchain Startups to receive more guidance with SEC strategy
The U.S. Securities and Exchange Commission (SEC) has recently launched a Strategic Hub for the Innovation which included the Financial Technology (FinHub). This is a newer divsion that has goals of making it much simpler for fintech and Blockchain startups, this was in order to navigate the legality and implications of their services.
The Finhub will act as a central point for securities regulation, this was according to an announcement that was made on Thursday October 18, this was in order to interact with entrepreneurs and developers that are in the financial technology industry.
This was especially focused on particular groups that had interest in the Distributed Ledger Technology (DLT), automated investments advice, digital financial marketplace, and artificial intelligence. There were also startups that will include the launch of ICOs (initial coin offerings).
This division aims to publicize any information that will be produced by the SEC, this will also make innovators ask questions or to clarify any regulations. There will also be collaboration with other regulators, that are both domestic as well as international, that are focused on any work that involves emerging technologies. The Finhub will also be hosting a FinTech Forum focused specifically on DLT’s and Digital assets for the coming years.
According to reports from the agency, Finhub will be run by the SEC’s senior advisor for digital assets and innovation, Valerie Szczepanik. They will be staffed by SEC officials that have previously worked on fintech-related issues. The associate director in the SEC’s Division of Corporate finance, Szczepanik had this to say about the decision:
“SEC staff across the agency have been engaged for some time in efforts to understand emerging technologies, communicate the agency’s stance on new issues, and facilitate beneficial innovations in the securities industry.”
The associate director also added that by launching the Fintech, that the SEC hopes to provide enough clearity for a better pathway for entrepreneurs, developers together with advisers in order to engage with the SEC staff to test ideas and inputs. Chairman of the SEC Mr. Jay Clayton noted in a statement that the agency will be looking to work with investors together with other market participants on the issues such as capital formation and financial services. There will also be a strong focus on maintaining protection for investors.
Jay also pointed out that :
“The Finhub provide a central point of focus for our efforts to monitor and engage on innovations in the securities markets that hold promise, but which also requires a flexible, prompt regulatory response to execute our mission.”
What do you think of the SEC’s decision to create a strategy for crypto startups? Feel free to leave your comments down below.