The Securities and Exchange Commission (SEC) has unveiled the Strategic Hub for Innovational and Financial Technology (FinHub). It is set to serve as a resource center for emerging technologies, key among them being blockchain, and to improve the overall fintech sector. The hub will also focus on artificial intelligence, or machine learning, as well as digital marketplace financing.
The hub is to act as a platform whereby the public will be able to interact directly with the SEC staff. People will also be able to share innovative ideas as well as technological developments with the watchdog. In addition, the SEC is to use the platform to share information on its initiative involving fintech.
The SEC also intends to use the FinHub to engage the public through publications and events focusing on digital ledger technology (DLT). The platform will also act as a clearinghouse for the SEC staff for the dissemination of information.
Valerie A. Szczepanik, Senior Advisor for Digital Assets and Innovation at the agency, is to head the FinHub. Likewise, representatives from other divisions with experience in fintech-related issues will be part of the unit.
“The SEC is committed to working with investors and market participants on new approaches to capital formation, market structure, and financial services […]. The FinHub provides a central point of focus for our efforts to monitor and engage on innovations in the securities markets that hold promise […],” said SEC Chairman Jay Clayton.
Focus On Blockchain
This is not the first time that the SEC has taken a keen interest in emerging technologies shaping the financial sector. The SEC has already announced plans to host a fintech forum. It will come about next year in a bid to unravel blockchain technology further. No doubt, the new FinHub platform will be of great use in that endeavor.
Blockchain technology has continued to draw attention given the impact it is having across multiple sectors. Blockchain capabilities, such as security and transparency, should come especially handy in transforming the financial sector.
Regulators around the world are also taking a keen interest on the emerging technology, given the synergies it promises. For instance, the Israeli SEC has already announced plans to implement the technology on its internal messaging system.
More specifically, the Israeli SEC is leveraging the blockchain technology to create a more secure messaging system that leverages decentralized data. Companies will soon be able to file all the relevant reports in the system. More importantly, the system should make it easy to track companies that have failed to file necessary tax returns.
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