SEC Chairman: We are actively seeking to regulate blockchain technology

The application scope of blockchain technology is becoming increasingly wide, and its influence can no longer be ignored. More and more regulatory agencies are seeking to regulate this disruptive technology.

The chairman of the U.S. Securities and Exchange Commission (SEC) spoke publicly on Thursday about the federal regulator’s current and future plans for regulating blockchain.

In her speech, SEC Chairwoman Mary Jo White outlined how the commission has approached blockchain in the past and in the future, and she explicitly called on companies or individuals to use new technologies such as blockchain to facilitate securities trading.

Mary Jo White

Mary said:

“The key regulatory question is whether blockchain applications need to be registered under the Commission’s existing regulatory mechanisms, such as clearing houses. We are actively exploring these issues and their implications.”

This is the first time the SEC has spoken publicly about the future of blockchain since December, when it approved Overstock subsidiary TØ’s request to issue securities on the bitcoin blockchain.

On December 22, 2015, SEC Secretary Brent Fields proposed regulating transfer agents and solicited public opinions on the use of blockchain technology under the federal securities regulatory system. In his speech on Thursday, he also evaluated whether these opinions could move the regulatory system in a positive direction.

A larger blockchain application market

Mary had given another speech before this on the topic of how to protect investors in rapidly developing financial markets.

In her speech, she laid out some of her potential concerns, such as new ways for startups to raise money before going public, and new legislation that is intended in part to allow companies to award equity as part of crowdfunding programs.

Mary’s speech also included her thoughts on the potential impact of blockchain on the securities industry. She also mentioned some of the “challenges of financial technology,” including robo-advisors, or machine-driven investment advisors, and marketplace lending.

Mary also spoke at an event hosted by the Rock Center for Corporate Governance at Stanford University, the "Silicon Valley Initiative: Protecting Pre-IPO Investments." The SEC's San Francisco Regional Office is working to engage in dialogue with academics, entrepreneurs, executives, and others in Silicon Valley.

In her speech, Mary said that new financial technology initiatives could change the way markets operate in almost every way. She believes:

“These innovative technologies force us to think carefully about how to best protect investors so that both they and we can have confidence in this growing and changing industry.”

Original article: http://www.coindesk.com/sec-chair-addresses-silicon-valley-initiative-potential-blockchain-regulations/
By Michael del Castillo
Compiled by: Kyle
Source (translation): Babbitt Information (http://www.8btc.com/sec-chair-blockchain-regulations)