As the crypto sector continues to grow, getting uniform and favorable regulations that suite all stakeholders has proven to be a thorny issue. However, the emergence of global networks pulling together stakeholders, including regulatory agencies, is proving to be beneficial. One such global network is the Global Financial Innovation Network, which now boasts of having several US-based agencies as members.
GFIN was created in 2018 by the UK’s Financial Conduct Authority to help stakeholders come together and hold discussions on emerging technologies. The network’s talks dwell on emerging technologies such as regulation of securities and initial coin offerings, artificial intelligence, and distributed ledger. With a membership of over 50 firms, members can craft the way forward on how to handle happenings in the crypto sector in a universal manner.
The network consists of banks, international organizations from across the globe, central banks, and now among the regulators forming its membership, GFIN has several US agencies. Per a press release from SEC, some US-based agencies are now members of GFIN. The agencies are the Securities and Exchange Commission (SEC), Office of the Comptroller of the Currency (OCC), the Federal Deposit and Insurance Corporation (FDIC), and the Commodities Futures Trading Commission (CFTC).
Reasons behind the Move to Join GFIN
In a bid to promote regulatory clarity, different agencies across the globe have taken proactive actions to help stakeholders in the space understand rules and regulations being put in place. However, besides that, the agencies also help identify risks and challenges but also help create solutions for issues that arise. Although these agencies have the capability of handling their responsibilities joining global networks such as GFIN work in their favor.
Besides furthering the agency’s primary objectives, working together with other regulators and experts will help promote uniform regulations. Furthermore, it also promotes financial stability, competition, financial inclusion, market integrity, and consumer/investor protection. Additionally, being part of GFIN will help financial regulators promote their expertise and interests while still supporting the needs of stakeholders.
However, above all, with GFIN receiving positive remarks from stakeholders after it released its consultation paper, it seems its work is being received well by stakeholders in the crypto space.