Fintech Bill Would Create Regulatory Sandboxes for New Products

From: Bloomberg/BNA

By Gregory Roberts

Sept. 23 — Regulators could temporarily waive some rules for financial technology firms working on new innovations, under legislation proposed by Patrick McHenry (R-N.C.)

This regulatory sandbox, which McHenry dubs “permanent beta” is designed to provide fintech entrepreneurs more freedom to try out a new idea without becoming entangled in what may be ill-fitting regulations. Fintech companies have complained that the U.S. lags the U.K. and some other countries in encouraging innovation by that means.

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