The cryptocurrency and blockchain startup world has just received another foundation of legitimacy as the US Securities and Exchange Commission or the SEC, has set up a new office to engage startups in this ecosystem. This announcement on Thursday, 18 of October, is part of a division called the Strategic Hub for Innovation and Financial Technology (FinHub) which allows startups in Fintech to interact with the regulator regarding legal implications of products before they are launched. In our view at Classiarius, this is positive as it shows a slow but clear acceptance of the world of blockchain and related industries. Yes, they are going mainstream.
In the past 12 months, there have been a number of high profile cases in which bogus cryptocurrencies have suggested or even stated outright that they are approved by the SEC – when in fact they were not. This new body gives serious startups a place to engage and of course check all the boxes to ensure that all legal expectations are met. In short, the SEC is educating entrepreneurs through an entity that is trusted and respected.
At one point, as many as 80 percent of the total number of coins, overt 2,000 were considered questionable and in some way broke rules – a large portion being outright fakes. Now that the SEC and Japanese FSA here in Tokyo are stepping up, this new industry has a more secure future and investors in the end, will warm up again to crypto and blockchain ICOs.