Executive Order instructs regulators to identify fintech opportunities

An Executive Order issued this week directs heads of financial regulatory agencies to identify rules, regulations, and guidance that would benefit from streamlining or amendments to facilitate innovation and support competition. America’s Credit Unions is analyzing the full scope of the Executive Order. 

While the organization generally supports streamlining regulatory processes, reducing barriers, and encouraging collaboration as mentioned in the order, other areas could raise new safety and soundness concerns. Specifically, language that could be used to allow nonbank access to certain federal licenses and services (including at the Federal Reserve).

America’s Credit Unions has expressed concern that granting entities currently ineligible to hold master accounts broad access to the Federal Reserve’s clearing and settlement infrastructure could weaken safety and soundness and possibly result in supervisory gaps in areas such as anti-money laundering compliance. 

Additionally, America’s Credit Unions is currently reviewing a new proposal issued by the Federal Reserve that would invite certain nontraditional, but still eligible, financial institutions to access a special-purpose, limited-feature payment account.

Read the Executive Order