By Michael Pflueger Introduction After the collapse of the Bahamas-based cryptocurrency exchange, FTX, Congress has been under immense public pressure to pass legislation that regulates the digital asset industries.[1] As of right now, there is no specific agency designated to regulate digital assets. This led several departments to supervise the digital asset industries. With that in…
Tag: FinTech
Fintech Companies and Regulatory Problems
Historically, the financial services industry has been protected from significant market disruption based on new technological innovation.1 Incumbent companies in the industry have a number of economic moats to rely on: “ubiquitous distribution through branches”; “unique expertise such as credit underwriting”; and “the special status of being regulated institutions that supply credit . . ….
Can the U.S. Improve Its International Competitiveness as a FinTech Hub?
My last blog post1 discussed the cumbersome financial regulations for FinTech firms in the United States, specifically as related to money transmitter laws. The nation’s challenging regulatory scheme may induce FinTech firms’ to do business in countries with friendlier regulatory environments like the United Kingdom. In an effort to be more accommodating to FinTech, the U.S….
Money Transmitter Laws and FinTech in the United States
Cumbersome and numerous, financial regulations in the United States have proven to be a daunting task for FinTech firms to navigate. The U.S. banking sector has a significant regulatory structure that can vary from state to state. This makes things difficult for FinTech firms because there is persistent confusion about what regulations apply to FinTech.1…