David Scott Wants to Streamline FinTech Regulation
Despite being one of the world's largest fintech ecosystems, America lags behind other major countries in providing a cohesive and consistent regulatory framework for fintechs. Part of the difficulty in navigating the U.S. regulatory environment are the different layers of government including state and federal. Blue Dog Congressman David Scott (D-GA) introduced bipartisan legislation last week to create a FinTech Council. It would designate, within the Treasury Department, a single point of entry into the federal financial regulatory system, allowing fintechs who meet certain requirements to be assigned one or more designated regulators through which regulatory action is funneled. The Fintech Act, which Scott introduced with Congressman Barry Loudermilk (R-GA), would also create an office of financial innovation. “It is very important for us in Congress to be proactive and help our fintechs get prepared to safely and successfully navigate our complex, multi-faceted federal financial regulatory structure,” Scott said. The measure would essentially mandate federal financial regulatory harmonization, meaning that each federal financial regulator that regulates fintechs must harmonize, coordinate, and eliminate any duplication and any conflicting regulations with any other federal regulator who would regulate fintechs. Under the current regulatory framework, fintechs are subject to the overlapping authority and jurisdiction of no less than 10 different federal agencies. More here.