An executive order issued May 19 directs federal financial regulators to review rules affecting fintech firms, digital asset companies, and blockchain-based financial services. Regulators must examine barriers that limit fintech partnerships with banks, credit unions, broker-dealers, investment advisers, and futures commission merchants. Agencies must review charter applications, deposit or share insurance requests, licensing processes, and other federal authorizations for eligible fintech firms. The order also requires the Federal Reserve to evaluate whether uninsured depository institutions and non-bank financial companies can access Reserve Bank payment accounts. Covered fintech activities include payment processing, lending, digital banking, securities and commodities market activity, blockchain-based services, and digital asset-related services. The goal is updated regulations that support innovation, integration, and competition.
"To foster this financial innovation, the Federal Government must update regulations to allow integration of digital assets and innovative technology into traditional financial services and payment systems. Reviews must identify barriers that limit fintech partnerships with banks, credit unions, broker-dealers, investment advisers, and futures commission merchants. Agencies also must examine charter applications, deposit or share insurance requests, licensing processes, and other federal authorizations for eligible fintech firms."
"Federal agencies must identify barriers limiting fintech partnerships, charter reviews, licensing, and other federal authorizations for eligible firms. Regulatory changes could affect charter approvals, licensing reviews, and Federal Reserve payment system access. President Donald Trump issued an executive order on May 19 directing federal financial regulators to review rules affecting fintech firms, digital asset companies, and blockchain-based financial services."
"The order calls for updated regulations that allow digital assets and new financial technology to integrate into traditional financial services and payment systems while reducing barriers that limit competition. The order defines fintech firms as non-bank companies using technology to offer or support financial products or services. Covered activities include payment processing, lending, digital banking, securities and commodities market activity, blockchain-based services, and digital asset-related services."
"Federal financial regulators must review rules, guidance, supervisory practices, orders, no-action letters, and application processes within 90 days. The order states: To foster this financial innovation, the Federal Government must update regulations to allow integration of digital assets and innovative technology into traditional financial services and payment systems. Federal Reserve Review Focuses on Payment System Access The Federal Reserve is requested to evaluate whether uninsured depository institutions and non-bank financial companies can access Reserve Bank payment account"
#fintech-regulation #digital-assets #federal-financial-regulators #banking-and-licensing #federal-reserve-payment-systems
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