SEC Launches FinHub to Assist Fintech Startups With Securities Regulation Information
US SEC Is Setting Up A New Office To Talk To ICO Startups
As part of an effort to regulate the market better, the U. S. Securities and Exchange Commission (SEC) is about to launch a new division which will be focused on helping fintech startups, including the ones which are getting their funds via Initial Coin Offerings (ICOs) to understand the legal implications of their products.
The SEC chairman Jay Clayton has affirmed that the creation of this new unit will signalize that the industry is working together with the investors to regulate the market and to protect them better. According to him, the effort to monitor and engage in innovations in the securities market is important for regulation and flexibility of the industry.
— Hester Peirce (@HesterPeirce) October 18, 2018
The announcement was made by the SEC today that the new Strategic Hub for Innovation and Financial Technology (FinHub) would act as an important central point for the SEC to connect with entrepreneurs and developers in the financial world. It was also affirmed that groups focused on the blockchain technology, automated investment advice and digital marketplace financing, as well as artificial intelligence, would receive special attention.
FinHub will serve as a place to publicize information produced by the SEC and to serve as a bridge between the commission and the innovators, as they will be free to ask questions there. This new division will also collaborate with national and international organizations in order to regulate emerging technologies.
The first FinTech Forum will be hosted at the FinHub building in 2019 and will be focused on the blockchain technology and its legal implications.
Run by Valerie Szczepanik, the SEC’s senior advisor for digital assets and innovation, the FinHub will have SEC officials who are experts in fintech-related issues working there. Szczepanik has affirmed that the staff of the SEC has been engaged in creating this unit to understand emerging technologies better and to facilitate the relations in this new industry.
According to her, by launching the FinHub, the SEC hopes to provide a clear path for innovators and entrepreneurs, as well as the developers who are seeking legal guidance.