FinTech Regulation is Not a Zero Sum Game

Regulation and innovation is not a zero sum-game – that is what a Senior Advisor to the Chair of the Securities and Exchange Commission (the “SEC”) said at the Financial Industry Regulatory Authority’s (“FINRA”) inaugural symposium on distributed ledger technology (“DLT”). A panel of representatives from the Federal Reserve Board, Office of the Comptroller of the Currency (the “OCC”), the Commodity Future Trading Commission (the “CFTC”) and FINRA echoed this sentiment as the agencies take steps to regulate financial technology (“FinTech). The representatives of the regulators acknowledged the promise of FinTech to revolutionize financial services and the challenges they face in regulating an industry that is being disrupted by FinTech. These challenges have led to a slow start for regulatory agencies with FinTech in their jurisdictions, but speakers at the FINRA conference indicated a promising openness from regulators to develop supervisory solutions that are mutually beneficial..

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For more information about this alert please contact Richard Levin or Robert Wenner