With the inauguration of Donald Trump imminent, law changes specifically in financial technology will surely be seen. Big players in this industry are “lenders such as Lenders Club, bitcoin and blockchain technology, also known as distributed ledger technology (DLT), money management applications such as Mint, money transmitters such as Venmo, and digital wallets,” as stated in a recent article.
Luckily for these companies, Trump’s campaign is pro for reducing regulation in the industry and similarly Congress, who is now a majority Republican is regularly against raising regulation in financial services. Furthermore, the Consumer Financial Protection Bureau (CFPB) is taking steps to be proactive with financial technology companies in that they will “review their products and services, as well as their compliance program,” while these companies are first forming so that they can set and understand compliance standards early on. I think is proactive approach to regulation is smart and government agencies should actively work with financial technology companies.
Finally, Congress is currently working on creating a Financial Services Innovation Office (FSIO) through a new act that would deal with all regulatory standards needed in the industry as it is a rapidly growing one and is likely here to stay.
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Financial technology rules are set to change in the Trump era