The Financial Industry Regulatory Authority, FINRA, has just published a report on the “Implications of Blockchain for the Securities Industry”, with a recommendation for distributed ledger market participants and regulators to collaborate in addressing any potential regulatory gaps in the way of Blockchain technology adoption.
According to the paper, FINRA points out the potential of distributed ledger technologies to bring additional efficiencies and increased transparency to the industry while also presenting some novel risks, and calls for an open dialogue with market participants to address any of these potential risks.
“FINRA welcomes an open dialogue with market participants to help proactively identify and address any potential risks or hurdles in order to tap into the full potential of DLT, while maintaining the core principles of investor protection and market integrity. Technological innovations in the industry, operating in accordance with these core principles, have the potential to provide investors with greater access to services and enhanced experiences, offer firms increased operational efficiencies and enhanced risk management, and enable further transparency in the marketplace.”
FINRA encourages all interested parties to provide comments on all aspects of its paper. Comments are requested by March 31, 2017.