Although Blockchain Technology is still in its early phase of development, a number of regulators and corporations are already coming up with ideas of
Although Blockchain Technology is still in its early phase of development, a number of regulators and corporations are already coming up with ideas of leveraging its benefits. The technology is likely to affect the way we invest. It is reducing the cost and improves security and transiency in the financial world. The technology makes it easy to track asset’s ownership, both during and after the transaction is over.
What is Blockchain Technology?
Blockchain, also known as distributed ledge, is a database of transactions data that does not allow alterations and are in packages call blocks. Each block consists of a chain of transactions that include the previous transactions. The technology aims at modernizing and simplifying the way clearing, settlement, and trading operations are done.
The blockchain technology offers many advantages. However, there is one key regulatory issue as regulators still have to determine whether blockchain application will have to register under the existing regulations. The Advancement Notice of Proposed Rulemaking and Concept Release on transfer agent regulation invited the transfer agent in December 2015 to give a comment on the blockchain technology, and whether the system would fit in the current regulations. This was meant to give SEC an idea on how the industry will be regulated.
Why is SEC bushing for Blockchain?
The U.S. Security and Exchange Commission (SEC) are responsible for enforcing federal security laws and regulate the security industry in general. SEC is acting as the voice of the Blockchain industry and has been working to implement the technology. It takes the public stance in implementing the blockchain technology. According to the head of SECs Distribution Ledger Working Group, Valerie Szczepanik, SEC is doing everything to show to the industry that they are serious in the implementation of the technology. They are also working hard to keep up to the industry speed in updating technologies related to the issues.