19-5-2025 – The SEC’s specialist technology division faces dissolution amid mounting pressures to streamline operations.
Speaking at a congressional briefing, SEC Chairman Paul Atkins has put forward proposals to dismantle FinHub, the commission’s technology innovation arm, and redistribute its capabilities across the organisation’s broader framework.
The specialist unit, which cut its teeth during the 2018 surge in digital innovation, had been tasked with scrutinising emerging technologies, from blockchain applications to artificial intelligence frameworks. Yet, despite its pioneering mandate, the division has struggled to shed its reputation as merely another enforcement mechanism.
“We’ve reached a crossroads where FinHub’s limited scope hampers its effectiveness,” Atkins remarked, highlighting the need for a more integrated approach to technological oversight. The proposed restructuring would see FinHub’s seasoned experts embedded within various SEC departments, potentially amplifying their impact across the regulatory landscape.
The move marks a notable departure from the SEC’s previous stance on dedicated technology oversight, reflecting broader shifts in regulatory thinking about digital innovation. Industry observers suggest this redistribution of expertise could either enhance or dilute the commission’s grip on rapidly evolving financial technologies.