©Truefit. All rights reserved.
©Truefit. All rights reserved.
"Toddlers play in sandboxes. Adults play by the rules."
That 2018 quote from The New York State Department of Financial Services set an interesting tone for Fintech innovation in the US and opposed the Department of Treasury’s endorsement of regulatory sandboxes for financial technology companies.
Since the launch of the UK’s regulatory sandbox in May 2016, regulators across the globe have adopted similar frameworks. Arizona was the first state in the US to create a Fintech sandbox in 2018. Utah just recently created their own in 2019.
Regulatory sandboxes are not only of interest to startup firms. They also have potential benefits for more established market players that are looking to launch innovative new products that do not fit easily within the mold of existing financial services regulation.
Will this patchwork of state sandboxes evolve to mirror the state bank licensing framework? And what should Pennsylvania do to stay competitive?
Will we see a national fintech sandbox model take shape from the FDIC or one of the handful of other national regulators? Or will we see more private partnership models like Boston's FinTech Sandbox?
A few links to get up to speed on sandboxes in the US:
https://commerce.utah.gov/sandbox.html
https://www.azag.gov/fintech
https://fintechsandbox.org
https://www.finextra.com/blogposting/15759/the-role-of-regulatory-sandboxes-in-fintech-innovation
https://www.dfs.ny.gov/about/statements/st1807311.htm
https://thehill.com/blogs/congress-blog/economy-budget/418770-Are-fintech-sandboxes-a-consumer-protection-desert%3F
Source:: https://www.meetup.com/Pittsburgh-Fintech-Meetup/events/263950185/
