The US Securities and Exchange Commission has launched a new hub to engage with companies using blockchain, artificial intelligence and Crypto currencies, among others.
FinHub will serve as a resource for public engagement on the regulator’s FinTech-related issues and initiatives, such as distributed ledger technology (including digital assets), automated investment advice, digital marketplace financing, and artificial intelligence/machine learning.
The strategic hub also replaces and builds on the work of several internal working groups at the SEC that have focused on similar issues.
SEC Chairman Jay Clayton said: “The SEC 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.”
FinHub will enable industry and the public to engage directly with SEC staff on innovative ideas and technological developments, as well publicising information regarding the SEC’s activities and initiatives involving FinTech.
It will also engage with the public through publications and events, including a FinTech Forum focusing on distributed ledger technology and digital assets planned for 2019, and act as a platform and clearinghouse for SEC staff to acquire and disseminate information and FinTech-related knowledge within the agency.
The platform will also act as a liaison to other domestic and international regulators regarding emerging technologies in financial, regulatory, and supervisory systems.
SEC’s FinHub will be led by Valerie Szczepanik, senior advisor for digital assets and innovation and associate director in the SEC’s division of corporation finance. She said: “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,” said
“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.”
The Securities and Exchange Commission recently filed charges against a former cryptocurrency exchange and its founder. The commission alleged BitFunder and founder Jon E. Montroll operated an unregistered securities exchange and defrauded its users by misappropriating their bitcoins. It also charged the operator with making false and misleading statements in connection with an unregistered offering of securities.
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