U.S. Securities and Exchange Commission has shown massive interest in cryptocurrency and blockchain technology. The institution has being on the front row advocating for application of a do no harm approach when creating regulations for this industry. SEC has gone an extra mile to launch a fintech called FinHub.
The main role of FinHub is to help the regulator to engage with cryptocurrency startups. The fintech hub will also help SEC to offer its services to the startups in a better way by creating a single access point. The ripple effect of this new development is that companies will be able to communicate with the general public in a better way.
Details of FinHub Created by SEC
Before we proceed, it is important to note that startups building their operations or offering their services using blockchain technology are increasing grasping the attention of SEC. As noted by Forbes, the new portal developed by Securities and Exchange Commission has the potential to streamline the processes of creating platforms that are compliant to the set regulations before they are launched to the public.
Verified sources who have being closely monitoring the development of this fintech hub have revealed to us that FinHub will be led by Valerie A. Szczepanik. Valerie has vast experience and understanding of cryptocurrencies and is the current senior advisor for innovation and digital assets. He is also an associate director in the Securities and Exchange Commission Division of Corporation Finance.
In a recent interview, Valerie said that the commission has being actively involved in cryptocurrency and blockchain technology. He also went ahead to state that the creation of FinHub is meant to help consolidate all the gains and provide valuable information to startups. The startups will also benefit from increased access to information especially about regulations. This information will help them to come up with platforms and products that are in line with SEC regulations and this will in turn cushion them from any legal tussles with the commission and the government.
It is also important to note that FinHub staff has being sourced from various U.S. Securities and Exchange Commission offices and division. They all have the expertise and knowledge about the various new generation fintech related issues that matter to the cryptocurrency industry. SEC is confident that this team will help come up with robust policies and regulations that will promote growth of the startups.
Apart from being able to ask SEC officials questions directly through the platform, startups will also be able to organize meetings with the commissioners more conveniently. This will in turn increase engagement and promote growth.
Finally, the number of cases identified by SEC as misleading and scam has increased significantly. The regulator has also gone an extra mile to publish names of all the scam websites on a dedicated webpage to educate the public about the scams. The new FinHub portal seems to be an extension of this strategy and will help streamline the industry and weed out fraudsters.
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