U.S. Financial Regulatory Agency Explores Blockchain’s Impact On Securities Trading
The Financial Industry Regulatory Authority released a report on blockchain’s impact on the securities industry in its efforts to support financial institutions investing in the technology. Many FINRA rules, as well rules by other regulators such as the Securities and Exchange Commission, are potentially implicated by various distributed ledger technology (DLT) applications, the report noted. A DLT application that alters clearing arrangements or serves as a source of recordkeeping by broker-dealers could implicate FINRA rules for carrying agreements and records requirements. FINRA seeks....
Related News
It’s too early to predict the full regulatory impact of distributed ledger technology (DLT), a representative of Europe's securities watchdog argued this week. Patrick Armstrong, a senior risk analysis officer for the European Securities and Markets Authority (ESMA), made the comments during a speech at a securities industry event in Oslo on 23rd January. In his remarks, Armstrong touched upon a number of the factors changing securities trading in Europe, including distributed ledgers. Notably, he indicated it is not yet possible to say which regulations might need to change due to the....
The European Securities and Markets Authority (ESMA) held a financial innovation event in Paris on 16th December, during which the topic of blockchain and distributed ledger technology was discussed. According to details of the event published by ESMA, participants conversed about the potential impact of the blockchain on mainstream financial services. The agency first issued a call for information on the technology in April 2015. During opening remarks, Jean-Paul Servais of Belgium’s Financial Services and Markets Authority touched on the subject, pointing to both the risks and....
The U.S. Securities and Exchange Commission (SEC) Chair, Gary Gensler, said Congress needs new regulatory frameworks for crypto exchanges. At present, no single agency is directly responsible for them, leading to an incoherent regulatory approach. A possible solution lies in the formation of a new agency to oversee crypto exchanges directly. Alternatively, an existing agency […]
Germany's top securities regulator published an internal journal last month with a cover story on the topic of blockchain tech, exploring its inner workings and offering early hints at how it views the emerging technology. In a newly published English translation, the agency, known as the Bundesanstalt für Finanzdienstleistungsaufsicht, or BaFin, explored potential applications of distributed ledgers, including its use in cross-border payments, interbank transfers and the storage of trading data. Though light on regulatory details, the publication suggests that BaFin sees a possible future....
"A trading platform that offers derivatives on digital assets to U.S. persons without registering, or in violation of CFTC trading rules, is subject to the CFTC’s enforcement authority," said Dawn Stump. Dawn Stump, one of four commissioners currently serving at the Commodity Futures Trading Commission, or CFTC, has released a statement clarifying the agency's authority with respect to digital assets. In a Monday statement, Stump said the CFTC is empowered with both regulatory and enforcement authority for commodities. She did not specifically say that digital assets were cash-like....