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FinHub to Branch out from SEC, Becoming Independent Office





Change is afoot within the SEC.  Not only will the regulatory body see its current Chairman, Jay Clayton, exit his role in the coming weeks, but a restructuring is taking place.  The ‘Strategic Hub for Innovation and Financial Technology’ – a working group within the SEC – will soon find itself branching off, becoming a ‘stand-alone office’.


In its new role, the SEC indicates that FinHub will now report directly to whoever holds the role of Chairman.  Operations will continue with the goal of ‘facilitating the SEC’s active engagement with innovators, developers, and entrepreneurs’.

Moving forward, FinHub will continue under the guidance of current Director, Ms. Szczepanik, who commented on the new structuring of the unit.

“The scope and complexity of FinHub’s work has continued to evolve and expand as technology itself has evolved…This organizational shift will facilitate the agency’s agility and flexibility to work with market participants and regulators worldwide, and to encourage leading-edge innovation that will shape the intersection between the federal securities laws and technology.”

An example of past work by FinHub is a framework which acts as an expansion to the age-old ‘Howey-Test’, which is used for determining if an asset is a security.  This framework is structured specifically towards digital assets, however, discussing the various considerations needed for those looking to release a digital asset into the wild.


FinHub has been around since 2018.  Until now, it has operated within the ‘Division of Corporation Finance’.

From day one, FinHub has had its hands full, as it’s creation aligned with the culmination of the 2017 ICO craze.  In years which have followed since, the SEC and FinHub have worked diligently to both educate and protect investors by holding those accountable for actions during this time.

Timing is Key

The timing of this development is key, as there are a litany of new technologies and sectors popping up as of late – primary of which is Decentralized Finance or ‘DeFi’.  With an increase in autonomy, FinHub should be well equipped to continue providing investors with protection, without stifling industry growth.


The Securities and Exchange Commission is a U.S. based regulatory body, tasked with ensuring fair and transparent markets.  This is done through the creation, and enforcement, of various laws surrounding the usage of securities.

Chairman, Jay Clayton, currently oversees operations at the SEC.

Joshua Stoner is a multi-faceted working professional. He has a great interest in the revolutionary 'blockchain' technology. In addition to this, he is a licenced Paramedic in Nova Scotia, Canada. As such, he can provide emergency care/medicine to any situation necessitating it.

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