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U.S. Chamber of Commerce Discusses the Future of Blockchain Technology

Bitcoin and Blockchain, Finance and Securities

On April 26, 2018 the U.S. Chamber of Commerce opened up to the future of fintech and blockchain technology at the 12th Annual Capital Markets Summit: Financing the Future of American Business. Leaders in both the public and private sectors took the stage to discuss financial regulation and its impact on the country’s economy.

Chamber President Tom Donohue discussed fintech regulation, blockchain technology and the “Crisis of the Vanishing IPO”; [1] and the Center for Capital Markets director, Kate Larson, highlighted the opportunities the fintech industry has to offer. Over the past couple of months the Securities and Exchange Commission has brought the numerous fraudulent initial coin offerings to light. The fintech industry is rapidly changing, making it difficult for regulators to govern. However, new coherent regulations, particularly for ICOs, will help integrate the fintech industry and capital markets. Larson explains that, “there are a lot of good opportunities in the space, from the Chamber’s perspective, to raise capital and make some headway there”.[2]

Blockchain technology keeps instantaneous records and can even be programmed to perform compliance checks. Implementing blockchain technology into the market would transform the efficiency of buying and selling securities by eliminating the timeframe to settle broker-dealer securities transactions completely, which currently takes two business days. The SEC recently amended Rule 15c6-1(a) of the Securities and Exchange Act 1934 to cut the timeframe from three business days to two to increase efficiency and reduce market risks.[3] However, it will probably be a while before the SEC takes the leap to eliminate this period all together.

The biggest problem facing the fintech industry is the lack of substantial regulation. The SEC, and other agencies, have published reports and guidance memos, but there is still a wide gap between the law and financial technology. The “complex financial regulatory structure in the U.S. has stunted innovation domestically simply because cryptocurrency and blockchain startups don’t know who to call to find out which federal agency they need to be reporting to”.[4] These companies should seek legal advice to ensure that they are complying with the appropriate securities laws. The president of Sweetbridge Alliance, Mac McGary, explained that “the U.S. needs to be more proactive in fostering an innovation friendly climate for blockchain and cryptocurrency entrepreneurs, especially given the speed at which other countries are moving on this front.”[5] For now, at least world’s financial leaders and business groups are discussing how blockchain technology can positively impact the markets and devising methods for regulation.


[1] Stanley, A. (April 26, 2018) “US Chamber Warns to Blockchian, Fintech Solutions at Capital Markets Summit.” Forbes. Available at: https://www.forbes.com/sites/astanley/2018/04/26/us-chamber-warms-to-blockchain-fintech-solutions-at-capital-markets-summit/#44f509e2383e. Accessed on April 27, 2018.

[2] Ib.

[3] See “SEC Cuts Time for Settlement Cycle.” Available at: http://guzovllc.com/sec-cuts-time-settlement-cycle/.

[4] Ib.

[5] Ib.

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