Integrating Financial Technology Innovation Into Regulatory Frameworks

The order aims to promote financial innovation and competition by modernizing regulations, reducing barriers for fintech firms, and potentially allowing non-banks greater access to payment systems historically controlled by traditional banks.

What the order does ​

• Directs federal financial regulators to review and update rules that impede fintech innovation or partnership with federally regulated institutions.
• Requires identification and revision of regulations that unnecessarily hinder fintech entry, especially for small and emerging firms.
• Orders streamlining of application processes for bank and credit union charters, insurance, and related federal licenses for eligible fintech firms.
• Requests the Federal Reserve to assess and report on legal and regulatory options for granting non-banks and digital asset firms access to Reserve Bank payment services.
• Encourages transparent, timely application procedures for such access if legally permissible.

Who it affects ​

• Fintech firms, especially startups and small or emerging companies.
• Federally regulated banks and credit unions.
• Non-bank financial companies seeking greater market access.
• Federal financial regulators and the Federal Reserve System.

Context ​

The order explicitly seeks a balance between promoting innovation, ensuring financial stability, and protecting consumers.