The latest launch Finhub portal by SEC will provide one-stop information on digital marketplaces, automated investment, the blockchain, and artificial intelligence.
19 October 2018, AtoZMarkets – Today, the U.S. Securities and Exchange Commission has announced that they will launch the Strategic Hub for Innovation and Financial Technology (FinHub). A portal will help companies to use blockchain technology, artificial intelligence and more.
The launch will serve as a resource for public engagement on the SEC’s FinTech-related problems and initiatives, such as distributed ledger technology, automated investment advice, digital marketplace financing, and machine learning.
The Finhub launch will be going to replace and builds on the work of several internal working groups at the SEC that have focused on similar problems.
Finhub – Key Points to be Noted
In the PR release today, they have mentioned the following key points that will benefit the whole ecosystem.
- To provide a portal for industry and the public to engage directly with SEC staff on innovative ideas and technological developments.
- Publicize the information regarding the SEC’s activities and initiatives involving FinTech on the FinHub page.
- To engage with the public through publications and events, including a FinTech Forum. Which will be focusing on distributed ledger technology and digital assets planned for 2019.
- To act as a platform and clearinghouse for SEC staff to acquire and disseminate information and FinTech-related knowledge within the agency.
- Serve as a liaison to other domestic and international regulators regarding emerging technologies in financial, regulatory, and supervisory systems.
The SEC’s FinHub will be led by Valerie A. Szczepanik, Senior Advisor for Digital Assets and Innovation and Associate Director in the SEC’s Division of Corporation Finance, and staffed by representatives from the SEC’s divisions and offices who have expertise and involvement in FinTech-related issues.
SEC Chairman Jay Clayton commented that:
“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.”
Also, he quoted that:
“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.”
By launching the strategy hub they hope to provide a clear path for entrepreneurs, developers, and their advisers to engage with SEC staff, seek input, and test ideas.
Valerie A. Szczepanik commented that:
“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.”
Over the past year the number of cases being publicly pursued by the SEC has increased. As a result the U.S securities regulator earlier this year published a web page that spoofed scam websites as a way to educate potential investors and blockchain builders. Also, the new portal appears to be an extension of the strategy.
The SEC made an announcement that it will hold its second FinTech forum which is dedicated to blockchain and other forms of distributed ledger technology in 2019.
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