How Regulation and FinTech Might Be Changing

Financial CHOICE ActIn 2012 the JOBS Act was passed by the U.S. Government to help startups and make investment crowdfunding easier. Now, five years later, the government is once again making strides to make the FinTech startup field easier to navigate.This is great news.

Currently making its way through the House, the Financial Creating Hope and Opportunity for Investors and Entrepreneurs (or CHOICE) Act, if adopted, could be another game-changer for FinTech startups. CHOICE The act aims to change the current financial regulation system, and these changes are beneficial for startups.

Very much a reaction to the 2008 financial crisis and the blowback to the bailouts, the act will seek to prevent the disaster from happening again — which is good news for the millions disgusted by the transference of wealth to companies that caused the crisis. However, that is not why the CHOICE Act deserves our attention.

The CHOICE Act aims to radically improve how small businesses operate and grow, creating an environment where FinTech startups will be able to thrive. As well, its intent to manage the financial regulation system to better protect consumers and entrepreneurs will create a better (FinTech fuelled) world for everyone.

That being said, the act is not popular with everyone. Many are worried that the decreased level of regulations will lead to the big banks (re)gaining a stranglehold on the market and the weakening of the Consumer Financial Protection Bureau is problematic.

The act is currently in the hands of the U.S. Senate and time will tell what changes they will impose before approving CHOICE.

FinTech is the future if we want the future to be better for everyone. It is excellent to see the U.S. government working to find a way to improve the financial system and make a better playing field for FinTech startups.

One thought on “How Regulation and FinTech Might Be Changing

  • And what will happen to the surge of fintech companies that have benefited from a higher- regulation environment? It’s important to consider how reform might ultimately happen and what the implications could be , both for Major legislative changes may be unwanted by financial markets.

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