Chicago based FinTech community, FinTank has revealed plans to set up a national self-regulatory organization (SRO) in the United States.
Based on reports, former Chicago Board Options Exchange (CBOE) trader, David Carman and partner George Vukotich lead FinTank SRO initiative.
The FinTank’s SRO represents a medium to regulate the global crypto industry, and it’ll most likely impact the crypto industry globally.
Besides, Carman described the SRO as a national endeavor and not a Chicago-local project. He also said that the system hopes to act with accountability, transparency, and integrity in developing and promulgating the highest professional standards. As well as providing best practices, which include providing awareness, education, training, and other resources to build human and technical capacity. Also, they’ll advocate for a regulatory environment that facilitates innovation, protects consumers, stakeholders and the broader public interest around the world.
Notably, Carman mentioned plans to make a name change. Although, FinTank remains heavily involved in the movement. He also said that he’s still unsure of his and partner’s possible roles in the SRO after the initiative gets initiated.
Uncertainties concerning regulations
The FinTank chief, Carman mentioned two primary issues with the current regulation in the crypto space. First involves the fact that there’s not enough regulations, especially with respect to spot exchanges overseas. Also, he said there’s uncertainty and a lack of clarity regarding the issuance of tokens.
Furthermore, Carman brought up the fact that the SEC and the CFTC already spoke the necessity of an SRO in creating a healthy regulatory environment. Carman believes that SROs can govern certain sectors or niches instead of existing regulations, or alongside them.
Over time, regulations by the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) tightened. The agencies also fined several ICOs pointing them out as unregistered securities offerings. But, regulatory guidelines still remain unclear.
Due to the regulatory conditions, Circle, the parent company of cryptocurrency exchange Poloniex, recently announced measures to make United States Poloniex users withdraw their funds.
Global FinTech Hub, FinTank reportedly supports Chicago’s thriving FinTech ecosystem and hosts series of FinTank educational programs and events.
Carman said they started when he selected many crypto space participants for a meeting in downtown Chicago in 2019 to discuss Chicago as a crypto trading hub.
The company reportedly provides access to meeting rooms and flex office space for startups pioneering the development of financial technologies that carry huge prospects. Additionally, members reportedly benefit from free legal advice, data & analytics, access to investors, daily networking/events/workshops. As well as, the opportunity to market their business, etc.