As of today, the US may be the financial center of the world, but many believe it is lagging behind when it comes to innovation. This is partly due to the many laws and regulations financial services firms are required to follow. The proposed “Financial Services Innovation Act of 2016” will establish a regulatory framework that will provide FinTech firms and startups the access and flexibility they need to innovate and experiment.
The purpose of the legislation is to address outdated financial laws and regulations, make the US more globally competitive versus its peers, and the mitigate constriction of regulatory supervision. Congressman McHenry, Chief Deputy Whip, recently proposed new legislation to promote FinTech innovation within the US. As such, McHenry seeks to introduce the Financial Services Innovation Offices (FSIO) within existing regulation agencies. If accepted, it will allow certain innovative products or services to adhere to an alternative compliance plan, enabling them to have more flexibility.
McHenry hopes the proposed bill will pass and receive bipartisan support. He notes that FinTech innovation may provide superior financial services for all customers at a lower cost.