FINRA, the Financial Industry Regulatory Authority, has released a comprehensive report titled, Distributed Ledger Technology: Implications of Blockchain for the Securities Industry. The paper provides a synopsis of distributed ledger technology (DLT), details how the technology is being applied and outlines the main implementations and regulatory concerns for financial industry professionals. FINRA wants to maximize the potential of DLT by accepting inquiries and inviting dialogue about the disruptive tech. To facilitate this, FINRA is requesting that DLT advocates assist with identifying and addressing any and all potential risks associated with the technology, while simultaneously maintaining the fundamentals that safeguard investors and preserve market veracity.
Innovation within the fintech industry depends largely on the strength of the self-regulating organization’s core principles, as communal guidance will ensure better access to services for risk management principles, market efficiencies, transparency, and create an overall better experience with DLT.
FINRA has asked that all direct inquiries be forwarded to either Haimera Workie, Senior Director of the Office of Emerging Regulatory Issues, at (202) 728-8097; or Kavita Jain, Director of the Office of Emerging Regulatory Issues, at (202) 728-8128.