House Subcommittee Examines Fintech
Congress is reviewing the financial technology marketplace to ensure proper regulations are in place without restricting companies’ innovation.
2/2/2018 9:00 AM
The House Subcommittee on Financial Institutions and Consumer Credit is continuing its discussion of the financial technology marketplace in an effort to understand how to properly regulate the industry while ensuring companies are able to operate and offer innovative products to consumers.
“From online lending and payment companies to blockchain and cryptocurrencies, advances in financial technology are changing the way financial markets work and how consumers access credit,” Subcommittee Chairman U.S. Rep. Blaine Luetkemeyer, R-Mo., said during a hearing Jan. 30. “With greater understanding of fintech’s capabilities, the Financial Services Committee and Congress can better create an environment that fosters certainty and responsible innovation while maintaining consumer protections.”
The subcommittee determined during the hearing that modern developments in digital technology are changing the way many financial services are offered and delivered, and that Congress and regulators must continue to evaluate the state of the industry, according to a news release.
Witnesses who testified during the hearing last week included:
- Nathaniel Hoopes, executive director, Marketplace Lending Association;
- Brian Knight, director, Program on Financial Regulation and Senior Research Fellow, Mercatus Center, George Mason University;
- Brian Peters, executive director, Financial Innovation Now;
- Andrew Smith, partner, Covington and Burling, LLP; and
- Adam J. Levitin, professor of Law, Georgetown University Law Center.
“We believe financial services are in a period of significant transformation and these changes give policymakers an excellent opportunity to try new approaches that enhance economic participation and improve access,” Brian Peters, executive director, Financial Innovation Now, said during the hearing. “The benefits [of fintech] could be enhanced through a modernized financial regulatory structure that keeps pace with innovation and meets the needs of today’s consumers and commerce. The current structure is needlessly fragmented and inconsistent among federal regulators, and varies widely across state jurisdictions.”
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