Note from the CEO: Oh great, calls for a committee to oversee fintech while creating rules. One Representative thinks ALL regulators (no…..not one) should regulate and have a “piece of the action”. That sounds like fun and of course won’t be costly. I see regulator cage fights here.
"One lawmaker has a solution for which U.S. regulator should take the lead on fintech firms -- all of them.
Representative Patrick McHenry plans to introduce legislation this week that would call for each financial regulator to create an in-house office to deal with start-ups that provide financial services as well as new technologies used by banks. The measure would also require a separate committee to monitor those offices and promote collaboration among the agencies.
Policy makers are under pressure to adopt rules for fintech that ensure safety without stifling innovation. There’s been even more urgency amid a scandal that engulfed online lending pioneer LendingClub Corp. earlier this year. A lot of money is at stake -- $13.8 billion of investment poured into fintech companies last year, according to data from CB Insights and KPMG International.
McHenry’s legislation would create a designated place for fintech companies to turn to for ensuring new products, ranging from consumer payment technology to systems for settling trades, are compliant......"
Read Full Article at Bloomberg