A new executive order directs federal financial regulators within 90 days to conduct reviews of their rules, processes and other mechanisms that could be updated to facilitate innovation and improve the competitiveness of financial products and services for fintech firms, “particularly those that are small and emerging.”
Specifically, the order issued Tuesday by President Donald Trump, and titled “Integrating Financial Technology Innovation into Regulatory Frameworks,” directs agencies to identify undue impediments to financial technology (fintech) firms entering into partnerships with federally regulated financial institutions; and identifying ways to streamline processes for “eligible” fintech firms to apply for bank charters, credit union charters, deposit or share insurance and other Federal licenses, registrations, and authorizations.”
This is to be done, it states, while “balancing innovation interests with the importance of safety and soundness, consumer and investor protection, market integrity, financial stability, and oversight.”
The order applies to federal financial regulators including the Federal Deposit Insurance Corp. (FDIC), National Credit Union Administration (NCUA), Office of the Comptroller of the Currency (OCC), Consumer Financial Protection Bureau (CFPB), the Securities and Exchange Commission, and the Commodity Futures Trading Commission (CFTC). It also requests that the Federal Reserve follow suit.
“Within 180 days of the date of this order, the head of each Federal financial regulator shall, in consultation with the Assistant to the President for Economic Policy, take steps to encourage innovation as a result of the review …,” the order states.
Executive order – “Integrating Financial Technology Innovation into Regulatory Frameworks“
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