Note from the Publisher: After a hurricane, where do you start the cleanup? Rhetorical question, but the only answer (that I know) is that you just start, one piece at a time. This is what I am afraid our government is facing with regard to regulating fintech, which as you know, we define as a massively broad category encompassing P2P, crowdinvesting, digital currencies, blockchain, payments, roboadvisors and more. Now – The Hill is reporting that several government agencies have stepped it up and are looking at all these technologies and how to allow innovation but also oversee and regulate. And while they study all this, the fintech freight train just keeps rolling, and progressing further along.
Methinks the government is going to always be one (or maybe ten) step/s behind the actual technology, and somehow they’re going to have to get their act together and get a handle on this FINTECH BEAST sooner rather than later, and stop studying it and just get going. Let’s just hope that they do so in a way that doesn’t kill it. If that happens, it will simply migrate overseas. Hang on for the ride, folks.
“The government is grappling with how to ensure that consumers and businesses using new financial technology services are safe without stifling the innovation behind the platforms.
Officials, who were speaking at an event hosted by the Brookings Institution in Washington, discussed the challenges policymakers face in balancing those priorities.
Sen. Mark Warner, a Virginia Democrat who sits on the Senate Banking Committee, said reforms after the crisis could serve as a guide for regulating financial technology, or fintech.
‘The Dodd-Frank Act brought us consumer protection and safety and soundness provisions,’ Warner said in a question-and-answer session. ‘How do those fit into the fintech world?’
The answer isn’t obvious.”