The US Securities and Exchange Commission (SEC) launched an initiative called “Strategic Center for Innovation and Financial Technology” (FinHub), which will have its primary objective to advise new ventures that use crypto and blockchain technology, digital financing, or artificial intelligence.
The financial regulator authorized a form for startups to generate requests for meetings with their representatives. The SEC intends to guide entrepreneurs before the launch of their projects to streamline them and address issues or problems that may arise “under federal securities laws.”
The SEC Chairman Jay Clayton said the Commission is willing to “work with investors and market participants on new approaches to capital formation, market structure, and financial services, to improve, and in no way reducing investor protection.
“FinHub provides a central focus for our efforts to monitor and engage in innovations in the securities markets that are promising, but also require a flexible and rapid regulatory response to execute our mission,” said Jay Clayton, the SEC Chairman.
The US SEC launched FinHub to advise startup related to crypto and blockchain technology
FinHub will be composed of the SEC’s staff members with expertise in financial and cryptocurrency technology and replaces several internal working groups that were dedicated to dealing with similar issues.
The FinHub portal will allow the sharing of information about events related to technological development in finance, including trading with cryptocurrency. The US SEC itself announced, without offering many details, that it will hold a forum next year focused on distributed ledger technology and cryptocurrencies.
The financial sector, in general, is one of the most regulated in the United States, with bodies such as the SEC or the Commodity Futures Trading Commission (CFTC). With the expansion of the cryptocurrencies blockchain technology, different North American authorities and entities have put the crypto ecosystem under scrutiny to understand its nature and to see to what extent they can intervene for its regulation.
Vadim has been a fan of decentralized systems, blockchain technology, and cryptocurrency since he first bumped into these concepts back in 2011. For us, he will cover Bitcoin (BTC), cryptocurrency, and blockchain technology news.