From the Web: ‘Fed Official Dismisses Regulatory Sandboxes for Fintech’
9/21/2017 9:00 AM
Regulators in the U.S. have been reluctant to adopt “greenlighting processes” that allow financial institutions to explore new technologies.
Banks in other countries are experimenting with new financial and regulatory technologies, but the trend of “regulatory sandboxes” taking shape in other countries is unlikely in the U.S., according to Gerald Tsai, director of applications, enforcement and fintech at the Federal Reserve Bank of San Francisco, Bloomberg BNA reports.
Tsai “acknowledged that U.S. financial regulators are behind counterparts in the U.K., Singapore, Australia and China in terms of responding to fintech and regtech innovations,” according to the article.
“I don’t see that sandboxes are likely going to be something that we in the United States are going to be using much in the near future,” Tsai told attorneys attending the American Bar Association’s Business Law Section annual meeting in Chicago.
However, he said, financial innovation is still strong in the U.S.
“Notwithstanding the complicated regulatory environment and the sort of delayed response that we seem to be having with a number of these matters, the U.S. fintech industry and the regtech industry is still quite large and has been a global leader for a long time,” he said.
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