16 July 2018
Visit www.avoka.com

Forget the sandbox, just build a web page - SEC commissioner

08 May 2018  |  7844 views  |  1 Footsteps in sand

A newly-appointed SEC commissioner has taken a swipe at the global trend for establishing fintech sandboxes, arguing that they place regulators and the regulated too close together, and instead calling for a more hands off, beach lifeguard-style approach to oversight.

Over the last two years, regulatory sandboxes have begun springing up around the world, enabling firms to test new products and services in a controlled environment. The concept has gained such momentum that the UK's Financial Conduct Authority has even begun leading efforts towards some form of global sandbox.

But Hester Peirce, a Republican who became an SEC commissioner in January, is not a fan. In a speech dedicated to ICOs at a conference in Los Angeles, Peirce made clear that she is in favour of an arm's length relationship with the firms she helps regulate, suggesting that the SEC simply build a web page on ICOs, tokens and DLT.

A noted sceptic of regulatory intervention who has been critical of the Dodd-Frank rules brought in after the 2008 economic crisis, Peirce told her audience in California that she is "often wary of so-called regulatory sandboxes".

She continues: "I am entirely in favour of finding ways to make appropriate regulatory allowances that clear the way for innovation to flourish. What troubles me about sandboxes, however, is that the regulator is typically sitting right there next to the entrepreneurs. The regulator is facilitating and hosting the sandbox."

Instead, Peirce prefers the beach lifeguard metaphor: "On a beach, the lifeguard watches over what is happening, but she is not sitting with sandcastle builders monitoring their every design decision. From her perch on the lifeguard stand, she can spot dangerous activity and intervene with a blow of the whistle or, if necessary, a direct intervention. She always stands ready to answer questions about the rules of the beach. She puts up the red flag to warn of dangerous riptides or sharks."

With ICOs and tokens currently generating much discussion in relation to securities violations, Pierce is keen to ensure that innovation is not hampered. To that end, she suggests that the SEC should meet market participants in a "more neutral place" than a sandbox.

Rather than work side-by-side with firms, she argues that the SEC should simply set up a web page devoted to questions and comments about ICOs, tokens, distributed ledger, and other crypto concepts.

"We already have an email address—fintech@sec.gov—that folks can use to contact SEC staff for the purpose of discussing their fintech projects and regulatory options. A website would be easier for innovators to find."

Comments: (1)

Simon Kelly
Simon Kelly - Global Payments - Leicester 09 May, 2018, 16:43

...so she's looking for some kind of Fintech Baywatch... 

Be the first to give this comment the thumbs up 0 thumb ups!
Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Regulators to hash out global fintech sandbox

Regulators to hash out global fintech sandbox

19 March 2018  |  7647 views  |  0 comments | 16 tweets | 13 linkedin
European Commission sets out 23-step 'Fintech Action Plan'

European Commission sets out 23-step 'Fintech Action Plan'

08 March 2018  |  19813 views  |  1 comments | 37 tweets | 57 linkedin
Market infrastructure body backs FCA global sandbox

Market infrastructure body backs FCA global sandbox

02 March 2018  |  8455 views  |  0 comments | 4 tweets | 4 linkedin
FCA explores creation of global sandbox

FCA explores creation of global sandbox

14 February 2018  |  10716 views  |  0 comments | 21 tweets | 19 linkedin
Saudi central bank provides sandbox for banks to try out Ripple tech

Saudi central bank provides sandbox for banks to try out Ripple tech

14 February 2018  |  15799 views  |  0 comments | 18 tweets | 12 linkedin
RBI panel calls for regulatory shake-up to handle fintech innovation

RBI panel calls for regulatory shake-up to handle fintech innovation

09 February 2018  |  7459 views  |  0 comments | 5 tweets | 7 linkedin
Ontario preps fintech sandbox

Ontario preps fintech sandbox

08 November 2017  |  7414 views  |  0 comments | 10 tweets | 7 linkedin
FCA issues sandbox progress report

FCA issues sandbox progress report

20 October 2017  |  12354 views  |  0 comments | 10 tweets | 6 linkedin
Lithuania plans regulatory sandbox

Lithuania plans regulatory sandbox

07 August 2017  |  12870 views  |  0 comments | 5 tweets | 6 linkedin
Central Bank of Bahrain debuts regulatory sandbox

Central Bank of Bahrain debuts regulatory sandbox

14 June 2017  |  8063 views  |  0 comments | 7 tweets | 10 linkedin
Abu Dhabi opens fintech RegLab

Abu Dhabi opens fintech RegLab

02 November 2016  |  6962 views  |  0 comments | 3 tweets | 14 linkedin
Malaysia sets out fintech sandbox framework

Malaysia sets out fintech sandbox framework

19 October 2016  |  18481 views  |  0 comments | 9 tweets | 5 linkedin
Thailand sets up fintech sandbox

Thailand sets up fintech sandbox

22 September 2016  |  10140 views  |  0 comments | 19 tweets | 8 linkedin
FCA opens regulatory sandbox

FCA opens regulatory sandbox

09 May 2016  |  12533 views  |  0 comments | 18 tweets | 29 linkedin

Related company news

 

Related blogs

Create a blog about this story (membership required)
Visit https://secure.vasco.comVisit www.aciworldwide.comVisit info.nice.com

Top topics

Most viewed Most shared
Flux ready for take-off on Barclays Launchpad; scores trial with Costa CoffeeFlux ready for take-off on Barclays Launch...
10550 views comments | 4 tweets | 9 linkedin
Handelsbanken trials micro contactless cardsHandelsbanken trials micro contactless car...
9560 views comments | 18 tweets | 30 linkedin
PayPal ready to spend $3bn a year on acquisitionsPayPal ready to spend $3bn a year on acqui...
8110 views comments | 13 tweets | 17 linkedin
Championing financial inclusion and helping the UnstoppablesChampioning financial inclusion and helpin...
8094 views comments | 3 tweets | 1 linkedin
No greater change will occur than that in financial servicesNo greater change will occur than that in...
7658 views comments | 7 tweets | 13 linkedin

Featured job

Competitive base, double ote, benefits
New York City, NY - USA

Find your next job