To engage with cryptocurrency and blockchain startups the U.S Securities and Exchange Commission (SEC) has recently started a new office. ‘The planned center for Modernization and Monetary technologies ‘ (FinHub) will make it stress-free for the fintech startups to communicate with regulators on the related issue and legal suggestions of projects before they are launched. FinHub will serve for the entrepreneurs in the fintech world as a central point, chiefly for groups which focus on new technologies like artificial intelligence, digital marketing place, blockchains and more as it was announced on October 18, 2018.
The expansion of its clampdown on blockchain startups that it claims has violated federal security laws the agency has sent out a number of subpoenas. FinHub can give appropriate directions to be entrepreneurs and provide the necessary clarity about the requirements needed to create products and complaint platforms. Developers and entrepreneurs can now ask questions from Hub as well as have access to regulator’s views actions about fintech space. Startups can also fix meetings with the regulators by using the portals.
Valerie A. Szczepanik, the Senior Advisor for Digital Asset and Innovation in the SEC’s Division of Corporation Finance, will be leading the Hub. He will be helped by other agency officials who are expert in fintech related issues as his staff. SEC has been educating entrepreneurs for a while now but now the portals aim at centralizing the process.
Szczepanik 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.”
Jay Claton the chairman of SEC firmly believes that the gateway will be fruitful in offering many ways “central point of focus” for the agency’s “efforts to keep a check and involve on originations in the safeties market.” He said 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.”
Over the number of years, the number of cases pursued by SEC and its organizations has increased considerably. Just last month, the SEC and the Commodity Futures Trading Commission (CFTC) filed charges against securities broker 1pool Ltd for offering security-based swaps funded with Bitcoin, which the agency says violates federal securities law.
The regulator issued a ceased and desist order to Hedge fund Crypto Asset Management and its founder Timothy Enneking for what the portal claimed was misinterpreting the company as the “first regulated crypto asset fund in the United States.” By doing this act the regulators demonstrated that they are not leaving the fight with the owner the Plexcoin. The first FinTech Forum will be hosted at the FinHub building in 2019 and will be focused on the blockchain technology and its legal implications.
According to her, by launching the FinHub, the SEC hopes to provide a clear path for innovators and entrepreneurs, as well as the developers who are seeking legal guidance.