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SEC forum on digital assets ‘just for show’

Digital Assets

The Securities and Exchange Commission (SEC) is holding a Fintech Forum on blockchain and digital assets on 31 May. Many believe the forum will pave the path for crypto regulation to finally go mainstream. Or will it?

According to Fokoya CEO, Gilad Raz, the SEC forum on blockchain and digital assets is ‘just for show’.

“The SEC forum on blockchain and digital assets will do what it does best, avoid regulatory framework and actual use-cases.”  He goes on to explain, “While the forum presents itself as a genuine attempt to work with the technology, the agenda focuses on ICOs when it should be engaging IEOs. The discussion should focus on topics that are timely and not six months delayed.”

The forum is hosted by the SEC’s Strategic Hub for Innovation and Financial Technology (FinHub). FinHub was launched in October last year to specifically address regulatory issues around fintech startups. According to Coindesk FinHub has been touring major cities in the US over the past few months in an effort to meet startups, to give advice and guidance and to ‘put a human face on the regulator’.

FinHub’s head, Valerie Szczepanik, is scheduled to open the forum this month where she will likely feedback on the roadshow. Also scheduled to make an appearance is William Hinman, SEC Director of Corporation Finance. Hinman famously said that Ether and Bitcoin were not securities. On 3 April this year the SEC issued what Hinman described as ‘plain english’ guidance on digital assets in it’s ‘Crypto Token Guidance’. However, the document was criticised by the crypto community for being too vague.

This has led Gilad Raz to conclude that the forthcoming SEC forum will likely not pave a clear path for regulation:

“In order to allow mainstream adoption of crypto markets, the SEC must recognize that organizations in the U.S. can greatly benefit from blockchain technology, which provides distributed ledgers, smart contracts and transparency. Perhaps it will be a turning point for the SEC in which the forum will deliver a new outcome on how it handles blockchain, though I am not hopeful.”

The 2019 Fintech Forum will be live-streamed from the SEC Headquarters in Washington DC via its website. Broadcast starts at 9:30am ET on May 31.

Fokoya is a leading P2P technology manufacturer and creator of Blockium, a trading platform particularly aimed at newcomers. Trading is gamified to enhance trading skills while limiting exposure to risk.

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