The SEC has launched ‘FinHub’, which they claim to be a ‘strategic hub for innovation and financial technology’. The new portal aids startups that use blockchain technology, with the potential to bring increased clarity and efficiency to regulatory compliance.
How the History Behind the SEC and Digital Assets have led to ‘FinHub’
In a CNBC interview this past summer, SEC Chairman Jay Clayton has publicly stated that virtually all ICOs are in fact securities offerings. This is because all tokens or digital assets that were used to raise funds for a venture or a company with an expectation of profit, either given by the company formed— or exchangeable on a secondary market—simply fall under the SEC’s classification of securities.
Despite this, enforcement has yet to be consistent. Such an atmosphere has resulted in much criticism of the SEC.
With security tokens taking off, the time for the SEC to act has arrived.
Yesterday’s launch of the SEC’s ‘FinHub’ may just be the first iteration of such action, and hopefully, the first step towards a clear regulatory framework for the greater blockchain and digital asset community.
The Goals and Personnel Behind the SEC’s FinHub
The new FinHub will be led by Valerie Szczepanik, the senior advisor for digital assets and innovation, and also associate director in the SEC’s Division of Corporate Finance.
The primary aim behind the launch of the FinHub seems to focus on increased dialogue between the SEC and blockchain-based startups, to hopefully streamline compliant platforms and offerings.
Meet Tim. Tim is a co-founder of The Tokenist. Originally from Kalamazoo, Michigan, Tim is a mechanical engineer by training and has been investing his whole life. He started his career with GE in engineering and operations management where he held various leadership roles before leaving to pursue an MBA (he is a proud former co-chair of the Milton Friedman Group at Chicago Booth). After business school, Tim spent several years with Baird Capital where he made private equity investments in consumer and industrial companies. He left Baird to found Protective Technologies Capital in 2018, where he continues to make private equity investments in family businesses looking for help with succession planning. Tim lives in Chicago, where he enjoys watching Michigan football and basketball and traveling with his wife Kristen. Like Sia, he also likes telling jokes. However, his wife adamantly insists that he not share his “dad jokes” publicly so he reluctantly sticks to writing about finance and technology.