The USA SEC (Securities and Exchanges Commission) has at last launched a specialized division for clarifying regulation about all thing related to technology. This division is called the Strategic Hub For Innovation and Financial Technology, also known as FinHub, and it will be occupied with all things crypto. This marks the first step of this institution to contribute to a clear regulatory environment regarding these new techs
SEC Stance With Fintech
The SEC has at last launched a specialized hub that will tackle legislation and clarify doubts amongst cryptocurrency startups like Initial Coin Offerings and exchanges. The division, called FinHub will have to deal with several innovative industries and instruments that have not been considered to regulate separately by the organization.
While SEC officers have already signaled that they won’t be treating these new technologies in a different way that old instruments, the purpose of this division is to provide information about the organization stance on certain key regulatory elements.
“The FinHub provides a central point of focus for our efforts to monitor and engage on innovations in the securities markets that hold promise, but which also require a flexible, prompt regulatory response to execute our mission.”, declared the SEC Chairman Jay Clayton.
Cryptocurrencies have been around a long time, and investors have been putting their money behind these tools for quite a while. So why has the SEC decided to go on with this initiative now, when it could have done it before easily?
There are certain facts that have been occurring lately that could be leading the SEC into this decision. First is the poor performance that the organization has shown regarding this Fintech cases lately. The cases of Michael Arrington, being subpoenaed by the second time this year, and Elon Musk, could have had something to do with this.
Also, the emergence of new, qualified instotutional-grade service providers like Bakkt and also Fidelity Investments, that wil need clarification on several delicate subjects; and their investors need to be clear about their rights and what is considered a security and what is now.
Work To Do
The new divission will have to work hard in some touchy and delicate matters that the main agency has passed by or decided to ignore during all this time. Led by Valerie A. Szczepanik, Senior Advisor for Digital Assets and Innovation, they will have to decide about which cryptocurrencies and tokens are securities, falling into their jurisdiction and field of action.
However, they are not only there to dictate and explain. The press release makes an important push for receiving feedback from the public about all of these important matters. “By launching FinHub, we hope to provide a clear path for entrepreneurs, developers, and their advisers to engage with SEC staff, seek input, and test ideas.”, Ms. Szczepanik said.
This is really encouraging for future investors that will have a more clear picture of what they can and can’t do when investing and establishing crypto startups and ICOs in the near future.