21 October 2020 - Article
On July 31, 2018, the U.S. Department of the Treasury released a report outlining proposed improvements to the regulatory scheme for Fintech and nonbank financial companies. The report is the fourth in a series of Treasury reports in response to Executive Order 13772, which calls on the Treasury to identify laws and regulations to encourage growth in the Fintech sector. The highlights among the 80 recommendations include: (1) the endorsement of a new federal bank charter for Fintech companies; (2) the enactment of stringent federal data security and breach notifications rules to protect consumers; and (3) the use of regulatory “sandboxes” thereby permitting companies to seek regulatory guidance while simultaneously releasing innovative products or services. For more information, see https://home.treasury.gov/news/press-releases/sm447.