Being part of a community is crucial to any investor’s growth. This is particularly true for the cryptocurrency sector, where stakeholders have to be up to date with the latest information before committing their money. Perhaps that is why the US Securities & Exchange Commission (SEC), through its Strategic Hub for Innovation & Financial Technology (FinHub) division, is planning a series of meetups for the fintech community.
These planned meetups are not just for investors. They benefit the institutions that organize them as well. From building a movement to receiving feedback about your services, the importance of meetups to an organization cannot be emphasized enough.
The announcement of crypto meetups was first posted to its webpage on March 6. The first meeting took place on March 26th, between 10 am and 4 pm, at the SEC’s regional offices in San Francisco. The next one was in Denver on May 3rd, after which the gatherings will spread to the rest of the country.
FinHub’s role in SEC involvement with stakeholders
The SEC recognizes the evolution of fintech in areas such as capital formation, investor interfaces and market patterns. Before the birth of FinHub, the SEC shared news through less effective methods such as general public warnings. As such, the SEC saw the need to upgrade its channels of relaying information. Launched on 18th October 2018, FinHub was established to enhance communication between the public and the SEC. So to say, this is where all the information about current and future projects is housed.
Some of the areas FinHub has ventured into include digital assets, artificial intelligence, distributed ledger technology, and automated investment advice. Participants in the crypto scene such as innovators, businesspersons, attorneys, and developers are welcomed to this platform to interact with the SEC’s officials directly. In addition, FinHub allows the Securities and Exchange Commission to keep track of changes in the stock market while at the same time advancing its agenda of uniting America’s fintech community.
In spite of all these features, there is still a need to make the exchange commission more interactive. Thanks to FinHub, you will no longer just speak to the SEC through a screen. Rather, the new peer-to-peer forums will give you an opportunity to come face to face with its representatives and other like-minded individuals at a location nearest to you.
Public Interaction and Registration
To participate in the forthcoming meetups those who wish to attend have been invited to express their interest. First off, visit the commission’s website to sign up for the event of your choice. Next, complete a form mentioning the issues you would like tackled at the meetup. These topics can either be general or distinct. Specific subjects highlighted in the registration are digital asset funds, advisory services, trading platforms, and marketplace financing.
Upon indicating the reason behind the requested meetup, the public is presented with the option of determining instrument, for example, security, custody inquiry, as well as various registration queries for securities, intermediaries, trading spaces and funding portals. You can also submit detailed discussion material ahead of the meeting and wait for an SEC employee to get back to you with the directions.
However, before contacting the agency with queries, keep in mind that there are frequently asked questions that have been addressed on the website’s “Spotlight on Initial Coin Offerings” segment. This section answers the common questions raised by both market professionals and investors.
Of particular emphasis is the fact that FinHub is only capable of providing simple guidelines and should never be consulted for legal counsel. In a recent statement, FinHub`s top advisor Valerie A. Szczepanik said, “we can’t give legal advice to any individual or member of the public, but we often give guidance to folks as they talk us through their proposed projects.”
What the Meetups Will Do for the Digital Market
The SEC, companies, investors, and the fintech community at large are hopeful that the scheduled meetups will revolutionize the crypto scene. So how exactly does the digital market stand to gain from these crypto gatherings?
- Give the SEC a deeper understanding of the industry
The gatherings will enable the exchange commission to spread its wings and reach more of its customers. Seeing that these forums will be held in different locations, the SEC will be able to analyze its impact in various geographical locations all over the United States. By so doing, it will be able to identify areas that are lagging behind and in turn find ways to propel them forward.
Likewise, the meetings will help the commission spot zones that hold promise. As a result, it will extend its reach and increase activities in those regions. It is important to note that not everybody is conversant with the activities of the SEC. Thus, the meetups will create awareness about what the exchange commission is all about.
- Facilitate clarification of federal laws governing the stock exchange
Being such a major financial institution, the securities market needs regulations to govern its operations. That is why the U.S. government has put in place laws to guide its activities. These laws apply for both small and large entities and touch on areas such as trading, broker registration and ownership of companies.
Sadly, not every market participant understands these guidelines. The consultative forums will not only shed light on existing regulations but will also help players know where their businesses fall to prevent them from landing on the wrong side of the law.
- Make digital assets more accessible to willing investors
As it stands, the securities exchange is currently evaluating requests from several organizations to list their crypto-related exchange-traded funds. Should the applications go through, the digital market is likely to witness an increase in the number of mainstream investors. This translates to the overall growth of the crypto market.
Conclusively, while some may speculate on the attempts to regulate the cryptocurrency market, it is not yet clear what the commission intends to achieve with these interactive forums. Even so, one thing is for sure, the meetings will go a long way in educating the public on matters crypto and encouraging market compliance.
Featured Image via BigStock.