Cryptocurrency companies have been popping up left right and center. The regulatory bodies are the ones who have been having the biggest problems for dealing with them. The SEC, in particular, has rejected a few Bitcoin ETFs and ever since has been running around trying to document and track every crypto company within its jurisdiction, but of course, eventually, it became too much. For now, the regulatory body decided to create a special office dedicated solely to the crypto companies and every crypto-related project.
The SEC is now participating in FinTech
The growing market has attracted so a lot of companies, most of them proved to be insufficient with the market knowledge and would disappear within weeks or months. With the introduction of this new Strategic Hub for Innovation and Financial Technology (FinHub), the SEC hopes to better regulate and filter companies who will be given permission to operate. Not only will the new hub help startups gain much-needed knowledge a lot faster, but it will also be a good connector between them and the regulator.
To be more specific, the SEC has been having problems about documentation and its technology is getting quite out of date compared to the AI and other innovations that the fintech industry is starting to be based upon. They had to really catch up with all the technology and that’s why they got so interested in understanding the AI, Blockchain and other various fintech technologies. The only way they could access this knowledge was through groups of experts and entrepreneurs.
FinHub will basically be the SEC’s fintech department, where every entrepreneur will be able to receive information about the regulatory bodies laws and guidelines about the industry. Not only that, but FinHub will be the direct source through Which the SEC will be delegating vital information to all the Fintech business owners and operators, keeping the flow fluid and efficient.
The SEC has already decided on who will be running the whole operation. They have already disclosed that it will be Valerie Szczepanik, who is the senior advisor for digital assets. There was actually no doubt that Szczepanik would be the one receiving the title, given the fact that he was the most knowledgeable and trustworthy employee in the industry that the SEC could find at that moment.