The world of digital assets and blockchain technology have been affected lot by the decisions made by regulatory authorities, with the United States Securities and Exchange Commission [SEC] being the main overwatch authority. During the recently conducted Fintech forum by the SEC, many officials from the organizations spoke about the effect which digital assets would have on commerce and the overall finance space.
The panelists at the forum also included Jay Clayton, the chairman of SEC who claimed that blockchain technology and the cryptocurrency industry had the promise for both efficiency and capabilities, but did ‘not neatly fit in any spot in the commission’. He admitted that the industry’s regulations cut across a lot of divisions in the SEC and that many people thought it was easy what the regulatory body does. In his words:
“There are many challenges in the space and the main way to tackle them is through engagement. We should also take into account what we have done earlier and compare that with what we are trying to achieve now. At the commission, what drives innovations is assessing the industry and competition.”
Clayton was accompanied by Commissioner Hector Pierce, who admitted that though both the old and the new technologies had risks, it was still important that the community took the plunge. She stated that Fintech can help in connecting entrepreneurs with people who have money staying thousands of miles away. She said,
“We need to keep an open mind about Fintech which might mean that we need to reconsider technologically outdated assumptions that underlines currency laws. Fintech can mean many things to many people and its effect on how investors communicate with each other and transmit activities are important.”
The SEC was also in the news recently when the Kin Foundation launched a $5 million ‘defendcrypto’ campaign aimed to request the SEC for the implementation of a new version of the Howey test.