The US Securities and Exchange
Commission (SEC) is setting up the Strategic Hub for Innovation and
Financial Technology (FinHub) to engage with the public on various
fintech- and blockchain-related matters.
An Oct 18 press release by the SEC says that the FinHub replaces and builds on the work of several internal working groups that have focused on similar issues.
The setting up of the FinHub, to be led by the SEC’s associate director of corporation finance/senior advisor for digital assets and innovation Valerie Szczepanik, could be in response to US lawmakers asking for more clarification on cryptocurrencies.
Recall that lawmakers from the House of Representatives had written a letter to SEC chairman Jay Clayton in late September asking for clarification over cryptocurrencies as well as their offer and sale in initial coin offerings (ICOs).
They had emphasised the need for guidance clarifying policy over enforcement actions following a series of cease-and-desist orders as well as judgements over ICOs and cryptocurrency transactions.
In particular, the lawmakers requested that the SEC clarify its views on what constituted securities, especially where such tokens are offered for sale through ICOs.
Separately, taxation has also been a cause for concern with lawmakers from the House’s Ways and Means committee writing a letter to the Internal Revenue Service over the matter.
The SEC’s Clayton says in the press release that the commission is committed to working with investors and market participants on new approaches to capital formation, market structure, and financial services, with an eye toward enhancing, and in no way reducing, investor protection.
“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,” he adds.
Meanwhile, Szczepanik says the SEC staff have been engaged for some time in efforts to understand emerging technologies, communicate its stance on new issues, and facilitate beneficial innovations in the securities industry.
“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,” she says.
The press release says the FinHub will:
An Oct 18 press release by the SEC says that the FinHub replaces and builds on the work of several internal working groups that have focused on similar issues.
The setting up of the FinHub, to be led by the SEC’s associate director of corporation finance/senior advisor for digital assets and innovation Valerie Szczepanik, could be in response to US lawmakers asking for more clarification on cryptocurrencies.
Recall that lawmakers from the House of Representatives had written a letter to SEC chairman Jay Clayton in late September asking for clarification over cryptocurrencies as well as their offer and sale in initial coin offerings (ICOs).
They had emphasised the need for guidance clarifying policy over enforcement actions following a series of cease-and-desist orders as well as judgements over ICOs and cryptocurrency transactions.
In particular, the lawmakers requested that the SEC clarify its views on what constituted securities, especially where such tokens are offered for sale through ICOs.
Separately, taxation has also been a cause for concern with lawmakers from the House’s Ways and Means committee writing a letter to the Internal Revenue Service over the matter.
The SEC’s Clayton says in the press release that the commission is committed to working with investors and market participants on new approaches to capital formation, market structure, and financial services, with an eye toward enhancing, and in no way reducing, investor protection.
“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,” he adds.
Meanwhile, Szczepanik says the SEC staff have been engaged for some time in efforts to understand emerging technologies, communicate its stance on new issues, and facilitate beneficial innovations in the securities industry.
“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,” she says.
The press release says the FinHub will:
- Provide a portal for industry and the public to engage directly with SEC staff on innovative ideas and technological developments;
- Publicize information regarding the SEC’s activities and initiatives involving fintech on the FinHub page;
- Engage with the public through publications and events, including a FinTech Forum focusing on distributed ledger technology and digital assets planned for 2019;
- Act as a platform and clearinghouse for SEC staff to acquire and disseminate information and fintech-related knowledge within the agency; and
- Serve as a liaison to other domestic and international regulators regarding emerging technologies in financial, regulatory, and supervisory systems.
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