SEC Launches FinHub to Communicate With Industry, But What Does it Have to Say?

The SEC, being an independent federal agency responsible for protecting investors from fraud schemes, has been trying to regulate the crypto market in the U.S. However, due to the decentralized nature of cryptocurrencies and lack of federal regulatory framework, the agency's purview has been significantly limited: the SEC had issued numerous public warnings for investors and fought crypto scammers on a case-by-case basis in the past, but has been unable to come through with more precise, blanket regulatory solutions.

The lawmaker argued that financial regulators such as the SEC should be given more power to regulate the cryptocurrency market in compliance with the same rules governing other currencies and stocks.

"It is important that all policy makers work toward developing clearer guidelines between those digital tokens that are securities, and those that are not, through better articulation of SEC policy, and, ultimately, through formal guidance or legislation."

Essentially, FinHub is a portal that aims to streamline communication between the SEC and the public.

As SEC Chairman Clayton states in the press release,.

"We've been doing these things for years. This is going to bring it all together We've found it incredibly helpful to hear from folks, especially in fast-moving areas like DLT". Thus, FinHub's key feature is communication: the website allows to contact SEC staff members and even request a meeting by submitting a corresponding form via a large button titled "Engage with FinHub".

The FinHub's website promotes information regarding the SEC's activities on the crypto market: for instance, there's a link to February's Chairman's testimony on virtual currencies and the agency's investor bulletin for ICOs, along with other educational articles like "5 things you need to know about ICOs".Regulatory uncertainty is still there.

Whilst the FinHub seems to be a sign that the SEC is looking to apply more regulation on the crypto market, its actual output is yet unclear.

The hub still represents a more advanced approach for a federal regulator to educate the masses and facilitate compliance on the market: in the past, the SEC relied on general public warnings and a mock ICO website that redirected clueless visitors to Investor.

Thus, the new SEC's center suggests that less industry players will be left in the dark now, as they will get more options to stay in touch with the regulating body.