Fintech Meets Regulation

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Fintech got a lot of attention this week as the Treasury Department outlined its plans for overseeing the sector. According to a four-page fact sheet, Treasury's report identifies roughly 80 recommendations that are designed to:

• Embrace the efficient and responsible use of consumer financial data and competitive technologies;
• Streamline the regulatory environment to foster innovation and avoid fragmentation;
• Modernize regulations for an array of financial products and activities; and
• Facilitate "regulatory sandboxes" to promote innovation.   

Treasury also endorsed the Comptroller of the Currency's plans to start accepting applications for fintech charters, a move that state regulators described as a "regulatory train wreck in the making." State regulators are expected to sue the Comptroller to try and stop the charters. You can read Treasury's full report here. American Banker's coverage of the report is here and the charter here. The Wall Street Journal story on both is here.

 

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Barb Rehm
Senior Managing Director
Promontory Interfinancial Network
Arlington VA
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