The Securities and Exchange Commission (SEC) is currently assessing the roadmap for blockchain implementation in the securities market.

This was recently revealed by SEC Chair Mary Jo White at the SEC’s first Fintech Forum held on November 14. In her opening remarks, White primarily spoke on the role of fintech in securities market and the direction it is headed, with a particular focus on blockchain technology, automated investment advice or robo-advisors, online marketplace lending and crowdfunding.

“Fintech innovations have the potential to transform key parts of the securities industry — and to do so in ways that could significantly benefit investors and our capital markets”, she said.

Speaking of blockchain technology, White said that the technology could greatly simplify the trading, settlement and clearing processes, making transactions faster, more efficient, and less expensive.

“In the area of blockchain, or distributed ledger, technology, our staff, including members from our Distributed Ledger Technology Working Group, are carefully evaluating when and how this technology will be on-boarded within the securities market”, she added. “To the extent there are real benefits to participants in the financial services sector and their customers, especially to back-office functionality, we are considering whether this technology will obviate certain services and participants or, rather, be adopted into current infrastructures.”

White further said that the SEC is also watching closely how innovators will overcome challenges to the widespread adoption of distributed ledger technology, such as interoperability and scalability, and to what extent such systems will be permissioned. In addition, she said that how innovators will address issues of cybersecurity and the safety of customer data and assets in a blockchain is also an important area of concern.

In her concluding remarks, White said the fintech working group at SEC will be soliciting additional input from investors, innovators, and the many other stakeholders in these new technologies.

“We are at the early phase, not the end, of our outreach…I welcome and encourage everyone’s continued engagement as we work to understand the new and emerging technologies to ensure that they work to further the interests of investors while building stronger, ever more innovative markets”, she added.

In a separate announcement, White said that after nearly four years as the agency’s head, she intends to leave at the end of the Obama Administration. She became the 31st Chair of the SEC in April 2013 and will be one of the SEC’s longest serving Chairs.

“It has been a tremendous honor to work alongside the incredibly talented and dedicated SEC staff members who do so much every day to protect investors and our markets,” said Chair White. “I am very proud of our three consecutive years of record enforcement actions, dozens of fundamental reforms through our rulemakings that have strengthened investor protections and market stability, and that the job satisfaction of our phenomenal staff has climbed in each of the last three years. I also want to express my appreciation for the engagement and dedication of my fellow Commissioners and my financial regulator colleagues, past and present.”