President Donald Trump signed an Executive Order yesterday that aims to reduce barriers to Fintech innovation, including digital assets.
The White House has long been supportive of Fintech and has been vocal in backing the GENIUS Act and the CLARITY Act, which aim to update rules to enable crypto and blockchain technology to thrive in the US while protecting users.
The EO stated that the policy said the US is a leader in financial innovation and to support Fintech, “the Federal Government must update regulations to allow integration of digital assets and innovative technology into traditional financial services and payment systems. The Federal Government must also remove overly burdensome and fragmented regulations and supervisory practices that form barriers to entry and primarily benefit incumbent financial services firms.”
The document defines Fintechs as non-bank entities, but Fintech is widely used by banks and traditional financial services today. The services outlined include payments, lending, deposits, investments, custody, and more. Regarding digital assets, it mentions both securities and commodities, as well as other blockchain-based services.
The EO outlines a 90-day deadline for the head of each federal regulator to review existing rules that impede Fintech innovation.
Within 2180 days, each regulator must “take steps to encourage innovation.” This must be accomplished in consultation with the White House and the Assistant to the President for Economic Policy.
A review of access to Reserve Bank payment accounts and payment services is included in the EO. Access for Fintechs to the Reserve Bank payment system can support the development of new financial services.
All of this seeks to boost innovation in financial services to improve both consumer and business offerings.
The Trump administration has distinguished itself from the prior administration, which was profoundly anti-innovation with respect to financial services. The EO would have been created in close consultation with the US Department of the Treasury, which typically takes the lead on policy matters outlined in the EO. The policy update will be welcomed by digital asset firms and other Fintechs.