SEC launches strategic hub for innovation, fintech

US Securities and Exchange Commission Office photo D Ramey Logan.

Independent United States federal government agency the U.S. Securities and Exchange Commission (SEC) announced in a press release it sent to CoinReport the launch of its Strategic Hub for Innovation and Financial Technology (fintech), or FinHub.

The FinHub will function as a resource for public involvement in the SEC’s fintech-related initiatives and issues, like digital marketplace financing, distributed ledger technology (including digital assets), machine learning/artificial intelligence and automated investment advice. The strategic hub also substitutes for and expands on the efforts of numerous SEC working groups that have concentrated upon similar matters.

The functions of the FinHub include:

• Bringing the SEC’s fintech-related initiatives and activities to the attention of the general public through the FinHub page.
• Offering a website for the public and the industry to involve directly with SEC staff on technological developments and pioneering ideas.
• Getting involved with the general public by means of events and publications, including a fintech forum concentrating upon distributed ledger technology and digital assets planned for the next year.
• Functioning as a connection to other national and international regulators concerning evolving technologies in supervisory, regulatory and financial systems.
• Serving as a platform and clearinghouse for SEC staff to obtain and distribute information and FinTech-related knowledge within the agency.

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, will lead the FinHub. Representatives from the SEC’s divisions and offices who have expertise and involvement in fintech-connected matters will hire for the strategic hub.

SEC Chairman Jay Clayton

SEC Chairman Jay Clayton said in the news release we received, “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.”

He added, “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.”

Szczepanik stated, “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.”

She added, “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 SEC recently returned to many of the Initial Coin Offering (ICO)-funded firms it sent initial information-seeking subpoenas to at the start of the year and subpoenaed numerous others – emphasizing on the startups that didn’t completely ensure they sold their coins to only accredited investors.

Image credits:

SEC building photo – D Ramey Logan  (CC BY 4.0)

SEC Chairman Jay Clayton’s photo – Public domain image