GLI | Fintech Laws & Regulations 2024

Approaches and developments

Overview of the U.S. regulatory landscape

The United States has a complex and multifaceted approach to regulating Fintech, reflecting its broader financial regulatory structure. Unlike some jurisdictions with a single, centralized financial regulator, the U.S. system is characterized by a network of federal and state agencies, each with specific mandates and often overlapping jurisdictions. This dual-layered system creates both challenges and opportunities for Fintech companies operating in the American market.

At the federal level, key regulators include the Office of the Comptroller of the Currency (“OCC”), the Consumer Financial Protection Bureau (“CFPB”), the Securities and Exchange Commission (“SEC”), and the Federal Trade Commission (“FTC”), among others. Each of these agencies plays a distinct role in overseeing various aspects of Fintech operations, from consumer protection to financial stability and market integrity.

State-level regulation adds another layer of complexity, with each of the 50 states having its own set of laws and regulatory bodies overseeing financial services. This can create a patchwork of requirements for Fintech companies operating across multiple states, necessitating careful navigation of diverse regulatory landscapes.

Upcoming challenges for Fintech regulation

Regulating financial technology companies (“Fintechs”) in the U.S. presents several significant challenges. First, regulatory frameworks continuously struggle to keep up with the rapid pace of innovation and evolving technologies servicing the marketplace. Recent examples of such innovations include artificial intelligence (“AI”) and digital assets, such as cryptocurrencies and nonfungible tokens. These innovations quickly become widely adopted but do not neatly fit into existing regulatory criteria. As a response, several federal agencies, including the OCC, CFTC, SEC, and Federal Deposit Insurance Corporation (“FDIC”), and a few states, including Arizona and Wyoming, have introduced regulatory sandboxes that allow Fintechs to test innovative products and services in a controlled environment with reduced regulatory requirements.

[i] This helps regulators understand new technologies and develop appropriate regulatory responses.

Second, the U.S. Fintech regulatory environment is highly fragmented, with multiple federal and state agencies having overlapping jurisdictions. This can lead to inconsistencies and confusion, both for Fintechs trying to comply with regulations and for consumers trying to understand their rights and protections. Although limited, there are initiatives to remedy this fragmentation, such as the Office of Financial Innovation and Transformation (“FIT”), within the Treasury Department, which works on streamlining financial regulations and promoting coordination among various regulatory bodies.[ii] Its initiatives aim to harmonize and modernize financial regulations across federal and state levels.

Third, Fintechs handle vast amounts of sensitive consumer data, raising significant concerns about data privacy and security. Regulators must balance the need to protect consumers with the desire to foster innovation. In this regard, the President issued a new executive order on data privacy on February 28, 2024, focusing on safeguarding biometric data, genomic data, personal health data, geolocation data, financial data, and other personally identifiable information, addressing the national security risks posed by the potential misuse of this data by foreign entities.[iii]

Fintech offering in the U.S.

Fintech landscape in the U.S. is vibrant and rapidly evolving, offering an ever-growing range of services that cater to diverse consumer needs. Below are some of the primary Fintech offerings in the U.S. and their associated regulatory frameworks.

Digital payments

Digital payment solutions are at the forefront of Fintech innovation, with peer-to-peer (“P2P”) payment platforms enabling instant money transfers. The proliferation of these solutions has necessitated new regulatory frameworks to ensure security and consumer protection. The Federal Reserve’s introduction of FedNow, in July 2023, aims to provide a regulated real-time payments infrastructure, and the CFPB oversees P2P payment platforms to ensure they comply with existing financial regulations.[iv]

Digital banking and neobanks

Digital-only banks, or neobanks, offer a full suite of banking services without physical branches, providing benefits such as lower fees and higher interest rates. Neobanks operate under different regulatory standards compared to traditional banks, often requiring partnerships with federally chartered banks to provide FDIC insurance. The OCC has proposed a special purpose national bank charter for Fintechs, although this initiative has faced legal challenges.[v] Meanwhile, the OCC and other regulatory agencies continue to focus on cybersecurity and data privacy standards to ensure these digital banks maintain robust security measures.

Lending platforms

Online lending platforms revolutionize the borrowing process by offering competitive rates and faster approval times. These platforms must comply with state and federal lending laws, including the Truth in Lending Act and the Equal Credit Opportunity Act. The use of alternative data for credit scoring is under scrutiny by the CFPB to ensure it does not lead to discriminatory practices, with recent proposals suggesting increased transparency in loan terms and borrower protections.[vi]

Robo-advisors and investment platforms

Numerous Fintechs provide automated investment advice and low-cost trading options, democratizing investing. These platforms are regulated by the SEC to ensure they adhere to fiduciary standards and provide transparent, accurate advice, especially as these companies increasingly rely on AI to provide their services.[vii]

Decentralized Finance (“DeFi”) and cryptocurrency

DeFi and cryptocurrency platforms use blockchain technology to offer financial services such as lending, borrowing, and trading without intermediaries. These platforms pose significant challenges for regulators, as they operate largely outside traditional regulatory frameworks. The SEC and the Commodity Futures Trading Commission (“CFTC”) are developing guidelines to address risks associated with DeFi, such as fraud and market manipulation, and ongoing discussions focus on how existing securities and commodities laws apply to these decentralized networks.[viii]

Regulatory and insurance technology

In the U.S., the regulatory framework for the insurtech sector is still in its infancy, focusing primarily on data privacy and cybersecurity. State-specific regulations create a varied landscape, with the National Association of Insurance Commissioners (“NAIC”) working to standardize these rules to better support digital insurtech services. In 2024, the NAIC intensified efforts to update its Model Data Security Law to enhance cybersecurity measures and protect consumer data across different states.[ix] While these steps are significant, they represent early stages of regulatory development. In comparison, the UK has made substantial progress by revising Solvency II regulations to facilitate market entry for smaller insurtech firms and by introducing the Financial Services and Markets Act 2023 to regulate Critical Third Parties.[x] Although the U.S. regulatory framework is still developing, these initial steps are encouraging, especially given the rise of insurtech products in the country. As with all regulatory initiatives, starting somewhere is crucial, and these early efforts indicate a positive direction for the future growth and stability of the insurtech sector.

The U.S. is seeing a growing interest in regtech solutions as financial regulations become increasingly complex. Agencies, such as the SEC and FINRA, are developing guidelines to ensure that regtech tools effectively reduce compliance risks without stifling innovation. A notable development in 2024 is the adoption of AI-driven compliance tools designed to enhance regulatory oversight and streamline compliance processes, helping financial institutions meet anti money laundering (“AML”) and know-your-customer (“KYC”)requirements more efficiently.[xi] However, these initiatives are still in their early stages and may be seen as baby steps compared to more advanced frameworks in other countries. For instance, the European Union has taken significant strides by integrating regtech solutions into regulatory frameworks, supported by stringent data protection standards set by the General Data Protection Regulation (“GDPR”). The European Banking Authority (“EBA”) has also been focusing on enhancing supervision and risk management through these technologies. Although the U.S. regulatory framework is still developing, it is encouraging to see initiatives being put in place, reflecting the rise of regtech products. As with all regulatory developments, it is essential to start somewhere, and these initial steps indicate a positive direction for the future growth and stability of the regtech market.

Regulatory bodies

Both federal and state agencies regulate Fintech products and organizations in the United States. Understanding the need to keep up with rapidly evolving technologies, many of these agencies have established dedicated offices focusing on Fintech regulation.

Federal regulators

There are several federal agencies involved in regulating Fintech, each with its own specific focus within the industry:

CFTC regulates futures, options, commodities and derivative markets. It oversees Fintechs involved in these markets, including those that deal with derivatives and commodities, to prevent fraud and ensure market transparency.
CFPB regulates and oversees Fintechs to ensure compliance with federal consumer financial protection laws. The CFPB regulates banks, lenders, payment processors, student loan service providers and money transfer services.
FDIC insures deposits of and regulates state-chartered banks which are not members of the Federal Reserve System. The FDIC regulates traditional banks, lenders, and payment processors that have developed or have partnered with Fintech platforms.
FTC ensures that Fintechs engage in fair and transparent practices and protects consumers from deceptive practices and acts. It also enforces data security and privacy standards to safeguard consumer information held by Fintechs. It regulates non-bank financial institutions, lenders, and businesses engaging in consumer transactions.
FinCEN oversees that Fintechs comply with AML and counter-terrorist financing (“CTF”) regulations. It monitors Fintech activities to detect and prevent financial crimes but has also advocated for the use of new technologies in AML compliance.
FINRA regulates broker-dealers and registered securities representatives. It oversees Fintechs that offer brokerage services and trading platforms, ensuring compliance with standards and regulations. Its main objective is to protecting investors by enforcing rules that maintain fair and honest marketplace.
Board of Governors of the Federal Reserve System (“FRB”) regulates state-chartered banks that are member of the Federal Reserve System, bank holding companies, and foreign banking organizations operating in the United States. It oversees the stability of depository institutions, including those integrating Fintech innovations, to ensure they operate safely and soundly within the broader financial system.
National Credit Union Administration (“NCUA”) oversees and charters national credit unions to ensure they operate safely and soundly while fostering Fintech innovations that can enhance member services. It provides guidance and support to help credit unions adopt new technologies securely and effectively.
OCC regulates and supervises national banks and federal savings associations, including Fintechs that obtain national bank charters, to ensure they operate safely within the financial system.
Office of Foreign Assets Control (“OFAC”) regulates U.S. organizations, foreign organizations transacting with U.S. persons, and U.S. persons, which includes U.S. citizens, permanent residents, companies, and any individual within the United States. OFAC ensures that Fintechs comply with U.S. sanctions programs, preventing transactions with sanctioned individuals, entities, and countries. It enforces compliance to maintain national security and foreign policy objectives by monitoring and regulating financial transactions using Fintech platforms.
SEC oversees Fintechs involved in securities trading, crowdfunding, and digital assets, including cryptocurrency, to ensure compliance with securities laws. It promotes investor protection, market integrity, and fair practices for Fintechs. The SEC is increasingly viewing digital assets, including cryptocurrencies and nonfungible tokens as securities that fall within the framework of U.S. securities regulation.

State regulators

In addition to federal regulators, state regulators are increasingly expanding their reach in the regulation of Fintechs. Although these agencies vary state by state, they can generally be broken down into a few distinct categories.

State Banking Regulators regulate state-chartered banks, credit unions, and non-bank financial institutions, including Fintechs. These agencies ensure compliance with state financial laws and consumer protection regulations. The New York State Department of Financial Services (“NYDFS”) is an example of a state banking regulator.
State Securities Commissions oversee securities markets and their participants within the state, including Fintechs involved in investment and trading activities. An example of a state securities regulator is the California Department of Financial Protection and Innovation (“DFPI”) which regulates securities, brokers, and investment advisers in California, ensuring fair practices and investor protection.
State Licensing Authorities issue licenses and oversee money transmitters, lenders, mortgage brokers, and other Fintechs engaged in similar activities. These agencies ensure compliance with state-specific licensing requirements. The Texas Department of Banking is an example of such a state regulator.
State Insurance Regulators ensure that insurance services and products offered by Fintechs abide by state specific rules. The Illinois Department of Insurance is an example of such a state regulator.

Key regulations and regulatory approaches

Recent AI-related focus in Fintech regulation

President Biden’s Executive Order on the Safe, Secure, and Trustworthy Development and Use of Artificial Intelligence (EO 14110), issued on October 30, 2023, outlines comprehensive measures to regulate AI.[xii] The order mandates that developers of powerful AI systems share safety test results with the government and establishes rigorous testing standards to ensure AI safety before public release. It emphasizes protecting Americans’ privacy and civil rights, preventing AI-enabled fraud, and fostering responsible AI use across various sectors, including healthcare, financial services, and critical infrastructure. The EO also promotes global collaboration on AI standards and safety, aiming to ensure that AI benefits society while mitigating risks.

Aligning with the Executive Order, the Department of Justice (“DOJ”) has recently prioritized AI as a top enforcement focus, emphasizing the mitigation of data security risks and ethical use of AI.[xiii] Deputy Attorney General Lisa Monaco highlighted AI’s dual nature, recognizing both its potential to enhance law enforcement capabilities and its risks, such as amplifying biases and creating harmful content. The DOJ launched initiatives like the “Justice AI Initiative” to address these challenges, bringing together experts from various sectors to inform policy and ensure that AI is used responsibly.

Key Fintech-related legislation and regulations in the U.S.

The U.S. regulatory framework for Fintech encompasses a broad range of federal and state regulations aimed at balancing innovation with consumer protection and financial stability. Major regulations governing Fintech in the U.S. include:

Approaches to addressing new Fintech developments

Regulatory Sandboxes: Several U.S. states, including Arizona and Wyoming, have established regulatory sandboxes to promote innovation in Fintech. These sandboxes allow Fintech startups to test new products and services under relaxed regulatory requirements, facilitating innovation while ensuring consumer protection.[xxiv]

Innovation Offices and Hubs: Regulators such as the SEC and the CFTC have set up offices and hubs dedicated to fostering innovation. These entities engage with Fintech companies, providing regulatory guidance and support to help them navigate the complex regulatory landscape.[xxv]

Restrictions

In general, substantive product and licensing restrictions applicable to Fintechs are set forth in the federal and state laws discussed above. However, certain aspects of these laws have proved especially fluid and continue to evolve to meet perceived regulatory challenges created by new Fintech innovations. Two of these developments are highlighted below.

Artificial Intelligence (“AI”)

AI continues to be at the forefront of U.S. regulatory efforts as the agencies try to navigate new products and services introduced by AI technology as well as companies’ false claims relating to the use of AI technology. Specifically, the FTC issued warnings against “AI washing” – the practice of making exaggerated or false claims about the use of AI technology.[xxvi] This includes actions taken against companies making baseless claims that their products are AI-enabled. In 2024, the SEC charged two investment advisers, Delphia (USA) Inc. and Global Predictions Inc., for making false and misleading statements about their purported use of AI. These firms paid civil penalties of $400,000 for falsely claiming to use AI in their investment processes when, in reality, they did not possess such capabilities.[xxvii] The DOJ emphasized AI as a top enforcement priority, focusing on mitigating data security risks and the ethical use of AI in its operations.[xxviii] These actions underscore the increasing scrutiny and regulatory efforts to ensure transparency and accuracy in the use of AI technologies across various sectors, including Fintech, in the United States.

Cryptocurrency

Since 2021, the SEC, CFTC, and state securities regulators have actively been enforcing federal and state securities laws against unregistered sales and fraud involving cryptocurrencies, targeting issuers and promoters.[xxix] Since 2023, the SEC expanded its regulatory focus to include intermediary companies offering staking or interest-bearing cryptocurrency accounts, taking the position that these entities are unregistered investment companies or operating under unregistered investment contracts.[xxx] In 2023, the SEC charged a large crypto exchange with operating as an unregistered securities exchange, broker, and clearing agency, as well as for its unregistered staking-as-a-service program, highlighting the agency’s aggressive stance on enforcing securities laws for crypto exchanges.[xxxi]

The CFTC also continued to focus its enforcement efforts in 2023 and 2024, taking actions against various crypto companies and their executives, with a significant focus on commodity derivatives transactions, unregistered trading platforms, and market manipulation.[xxxii] Specifically, the CFTC charged a large crypto exchange and its founder with willful evasion of federal law and operating an illegal digital asset derivatives exchange. The lawsuit alleges numerous violations of the Commodity Exchange Act (“CEA”), including providing guidance to U.S. customers on how to evade compliance controls and regulatory requirements. Similarly, the CFTC charged former the CEO of a digital asset platform with fraud and registration failures. The complaint alleges that customers were misled about the safety and FDIC insurance of their assets, took excessive risks with customer funds, and operated an unregistered commodity pool.[xxxiii]

State regulators, such as the NYDFS, continued to enforce stringent standards, particularly targeting firms that failed to meet licensing and AML compliance requirements. In May 2023, the NYDFS fined a Fintech $1.2 million for failing to conduct adequate risk assessments and maintain an effective cybersecurity program. The company relied on inadequate IT audits and failed to tailor its cybersecurity policies to address specific risks, highlighting NYDFS’s strict enforcement of cybersecurity standards.[xxxiv]

These coordinated efforts across federal and state levels underscore the heightened regulatory scrutiny and the push for a more coherent regulatory framework in the U.S. cryptocurrency market.

Cross-border business

In an increasingly interconnected financial landscape, global Fintech rules and regulations are evolving to address the complexities of cross-border operations and digital innovation. While there is a growing recognition of the need for international collaboration, U.S. regulatory efforts in 2024 remain predominantly focused on domestic concerns. Although there is some awareness of global Fintech challenges and the importance of cross-border cooperation, there are few specific examples of U.S.-led initiatives for international regulatory collaboration.

One significant effort of cross-border collaboration between U.S. and global regulators to address the challenges and opportunities presented by Fintech innovations is the Global Financial Innovation Network (“GFIN”), which was joined by the CFTC, FDIC, OCC and SEC.[xxxv] GFIN is an international coalition of over 70 financial regulators and related organizations, established to support financial innovation for the benefit of consumers. It aims to facilitate cooperation and knowledge-sharing among regulators on innovative financial services and technologies, helping firms navigate regulatory requirements across multiple jurisdictions more efficiently.[xxxvi]

Another cross-border effort is the Financial Action Task Force (“FATF”), an intergovernmental organization established to develop policies aimed at combating money laundering, terrorist financing, and other related threats to the integrity of the international financial system. The FATF sets international standards and promotes the effective implementation of legal, regulatory, and operational measures for combating these illicit activities. The United States plays a significant role within the FATF, contributing to the development of policies and participating in mutual evaluations of member countries to ensure compliance with FATF standards. The U.S. regulators implement FATF recommendations through its domestic rules and regulations, thereby enhancing global efforts to combat financial crimes.[xxxvii]

Fintechs engaging in payment or remittance services can rely on a relatively robust cross-border regulatory framework in the United States. Regulatory efforts in this area have predominantly focused on consumer protection and anti-money laundering/counter-terrorism financing (“AML/CTF”). Specifically, the Electronic Fund Transfer Act (“EFTA”) and Regulation E mandate clear disclosures of fees and delivery times for consumers. Fintechs engaging in money services businesses must obtain licenses and meet financial requirements under these regulations.[xxxviii] Regulation E provides comprehensive consumer protections, including requirements for pre-payment disclosures, receipts, and error resolution procedures for remittance transfers.[xxxix] AML/CTF regulations, administered by FinCen, require Fintech remittance providers to implement compliance programs with KYC procedures, transaction monitoring, and reporting suspicious activities.[xl] FinCen’s “travel rule” requires that Fintech’s transmit sender and recipient information on certain funds transfers across financial institutions to aid agencies in tracking illicit activities.[xli] Fintechs specializing in digital asset exchanges and custody, such as those dealing with cryptocurrency or nonfungible tokens, are often targets of agency compliance investigations. These regulations apply to both U.S.-based entities and foreign entities looking to operate in the U.S., ensuring they meet stringent consumer protection and AML/CTF standards.

See Also

Fintech Adoption Hotspots | Tipalti

Endnotes

[i] A Few Thoughts on Regulatory Sandboxes, PACS Center at Stanford University, https://pacscenter.stanford.edu/a-few-thoughts-on-regulatory-sandboxes/#:~:text=Other%20agencies%2C%20including%20the%20OCC,at%20various%20stages%20of%20exploration

[ii] FIT: Financial Innovation & Transformation, U.S. Department of the Treasury, https://www.fiscal.treasury.gov/fit/

[iii] Executive Order on Preventing Access to Americans’ Bulk Sensitive Personal Data and United States Government-Related Data by Countries of Concern, The White House, https://www.whitehouse.gov/briefing-room/presidential-actions/2024/02/28/executive-order-on-preventing-access-to-americans-bulk-sensitive-personal-data-and-united-states-government-related-data-by-countries-of-concern/

[iv] FedNow, Federal Reserve Financial Services, https://www.frbservices.org/financial-services/fednow; CFPB Proposes New Federal Oversight of Big Tech Companies and Other Providers of Digital Wallets and Payment Apps, Consumer Financial Protection Bureau, https://www.consumerfinance.gov/about-us/newsroom/cfpb-proposes-new-federal-oversight-of-big-tech-companies-and-other-providers-of-digital-wallets-and-payment-apps/

[v] Considering Charter Applications from Financial Technology Companies, Office of the Comptroller of the Currency, https://occ.gov/publications-and-resources/publications/comptrollers-licensing-manual/files/pub-considering-charter-apps-from-fin-tech-co.pdf

[vi] CFPB Proposes to Ban Medical Bills from Credit Reports, Consumer Financial Protection Bureau, https://www.consumerfinance.gov/about-us/newsroom/cfpb-proposes-to-ban-medical-bills-from-credit-reports/; Update: Credit Access and No Action Letter, Consumer Financial Protection Bureau, https://www.consumerfinance.gov/about-us/blog/update-credit-access-and-no-action-letter/

[vii] SEC Press Release 2024-65, U.S. Securities and Exchange Commission, https://www.sec.gov/news/press-release/2024-65

[viii] Cybersecurity Enforcement Actions, U.S. Securities and Exchange Commission, https://www.sec.gov/spotlight/cybersecurity-enforcement-actions; Press Release 8680-23, U.S. Commodity Futures Trading Commission, https://www.cftc.gov/PressRoom/PressReleases/8680-23

[ix] NAIC Cybersecurity, National Association of Insurance Commissioners, https://content.naic.org/cipr-topics/cybersecurity

[x] Financial Services and Markets Act 2023, UK Government, https://www.gov.uk/government/news/uk-slashes-red-tape-through-bold-reforms-to-insurance-sector-regulation

[xi] SEC Press Release 2023-140, U.S. Securities and Exchange Commission, https://www.sec.gov/newsroom/press-releases/2023-140; SEC Rules, U.S. Securities and Exchange Commission, https://www.sec.gov/rules

[xii] Executive Order on the Safe, Secure, and Trustworthy Development and Use of Artificial Intelligence, The White House, https://www.whitehouse.gov/briefing-room/presidential-actions/2023/10/30/executive-order-on-the-safe-secure-and-trustworthy-development-and-use-of-artificial-intelligence/‘; Fact Sheet: President Biden Issues Executive Order on Safe, Secure, and Trustworthy Artificial Intelligence, The White House, https://www.whitehouse.gov/briefing-room/statements-releases/2023/10/30/fact-sheet-president-biden-issues-executive-order-on-safe-secure-and-trustworthy-artificial-intelligence/; Fact Sheet: Biden-Harris Administration Executive Order Directs DHS to Lead Responsible, U.S. Department of Homeland Security, https://www.dhs.gov/news/2023/10/30/fact-sheet-biden-harris-administration-executive-order-directs-dhs-lead-responsible

[xiii] Update on Deputy Attorney General Lisa Monaco’s Justice AI Convenings, U.S. Department of Justice, https://www.justice.gov/opa/pr/update-deputy-attorney-general-lisa-monacos-justice-ai-convenings; Deputy Attorney General Lisa O. Monaco Delivers Remarks at the University of Oxford, U.S. Department of Justice, https://www.justice.gov/opa/speech/deputy-attorney-general-lisa-o-monaco-delivers-remarks-university-oxford-promise-and; Attorney General Merrick B. Garland Designates Jonathan Mayer to Serve as the Justice Department’s First Chief of AI, U.S. Department of Justice, https://www.justice.gov/opa/pr/attorney-general-merrick-b-garland-designates-jonathan-mayer-serve-justice-departments-first

[xiv] Bank Secrecy Act, Office of the Comptroller of the Currency, https://www.occ.treas.gov/topics/supervision-and-examination/bsa/index-bsa.html

[xv] Bank Secrecy Act, Financial Crimes Enforcement Network, https://www.fincen.gov/resources/statutes-regulations/bank-secrecy-act

[xvi] CFPB Supervision, Consumer Financial Protection Bureau, https://www.consumerfinance.gov/about-us/careers/supervision/

[xvii] Conference of State Bank Supervisors, https://www.csbs.org/

[xviii] Dodd-Frank Wall Street Reform and Consumer Protection Act, Congress.gov, https://www.congress.gov/111/plaws/publ203/PLAW-111publ203.pdf

[xix] Gramm-Leach-Bliley Act, Congress.gov, https://www.congress.gov/106/plaws/publ102/PLAW-106publ102.pdf.

[xx] General Data Protection Regulation (GDPR), https://gdpr.eu/; Financial Stability Board (FSB), https://www.fsb.org/

[xxi] Considering Charter Applications from Financial Technology Companies, Office of the Comptroller of the Currency, https://occ.gov/publications-and-resources/publications/comptrollers-licensing-manual/files/pub-considering-charter-apps-from-fin-tech-co.pdf; Special Purpose National Bank Charters for Fintech Companies, Office of the Comptroller of the Currency, https://www.occ.gov/publications-and-resources/publications/banker-education/files/pub-special-purpose-nat-bank-charters-fintech.pdf

[xxii] CFPB Proposes Rule to Jumpstart Competition and Accelerate Shift to Open Banking, Consumer Financial Protection Bureau, https://www.consumerfinance.gov/about-us/newsroom/cfpb-proposes-rule-to-jumpstart-competition-and-accelerate-shift-to-open-banking/

[xxiii] Truth in Lending Act, Federal Trade Commission, https://www.ftc.gov/legal-library/browse/statutes/truth-lending-act; Fair Credit Reporting Act, Consumer Financial Protection Bureau, https://files.consumerfinance.gov/f/201504_cfpb_fair-credit-reporting-act.pdf

[xxiv] Wyoming Fintech and Innovative Financial Products, Wyoming Banking Division, https://wyomingbankingdivision.wyo.gov/home/areas-of-regulation/fintech-and-innovative-financial-products; Arizona Fintech Sandbox, Arizona Attorney General, https://www.azag.gov/sandbox

[xxv] SEC Strategic Hub for Innovation and Financial Technology (FinHub), U.S. Securities and Exchange Commission, https://www.sec.gov/about/divisions-offices/office-strategic-hub-innovation-financial-technology-finhub; LabCFTC News and Events, U.S. Commodity Futures Trading Commission, https://www.cftc.gov/LabCFTC/News-Events/index.htm

[xxvi] Keep Your AI Claims in Check, Federal Trade Commission, https://www.ftc.gov/business-guidance/blog/2023/02/keep-your-ai-claims-check

[xxvii] SEC Press Release 2024-36, U.S. Securities and Exchange Commission, https://www.sec.gov/news/press-release/2024-36

[xxviii] Deputy Attorney General Lisa O. Monaco Delivers Remarks at the University of Oxford, U.S. Department of Justice, https://www.justice.gov/opa/speech/deputy-attorney-general-lisa-o-monaco-delivers-remarks-university-oxford-promise-and

[xxix] Cybersecurity Enforcement Actions, U.S. Securities and Exchange Commission, https://www.sec.gov/spotlight/cybersecurity-enforcement-actions

[xxx] SEC v. Genesis Global Capital, LLC & Gemini Trust Co., LLC, No. 23-cv-287 (S.D.N.Y. Jan. 12, 2023) (interest paying program involved the sale of unregistered notes or investment contracts); In re Nexo Capital Inc., SEC No. 3-21281 (Jan. 19, 2023) (same).

[xxxi] SEC Press Release 2023-102, U.S. Securities and Exchange Commission, https://www.sec.gov/news/press-release/2023-102

[xxxii] CFTC Press Release 8680-23, U.S. Commodity Futures Trading Commission, https://www.cftc.gov/PressRoom/PressReleases/8680-23

[xxxiii] CFTC Press Release 8805-23, U.S. Commodity Futures Trading Commission, https://www.cftc.gov/PressRoom/PressReleases/8805-23?utm_source=govdelivery

[xxxiv] BitFlyer USA Inc., Consent Order, New York State Department of Financial Services, https://www.dfs.ny.gov/system/files/documents/2023/05/ea20230502_bitflyer_usa_inc.pdf

[xxxv] CFTC Press Release 8058-19, U.S. Commodity Futures Trading Commission, https://www.cftc.gov/PressRoom/PressReleases/8058-19

[xxxvi] Global Financial Innovation Network, The Global Financial Innovation Network, https://www.thegfin.com/ and https://www.consumerfinance.gov/rules-policy/competition-innovation/global-financial-innovation-network/; In re Blockfi Lending LLC, SEC No. 3-20758 (Feb. 14, 2022) (32 state securities joined in the terms of the SEC settlement with Blockfi in an arrangement coordinated by the North American Securities Administrators Association): https://www.nasaa.org/62000/nasaa-and-sec-announce-100-million-settlement-with-blockfi-lending-llc/#:~:text=In%20the%20past%20year%2C%20state,BlockFi%20interest%20accounts%20(BIAs)

[xxxvii] The FATF Recommendations 2012 (as amended February 2022), Financial Action Task Force, available at https://www.fatf-gafi.org/publications/fatfrecommendations/documents/fatf-recommendations.html#:~:text=The%20FATF%20Recommendations,-Send&text=As%20amended%20March%202022.,of%20weapons%20of%20mass%20destruction; FATF Plenary Outcomes February 2024, Financial Action Task Force, https://www.fatf-gafi.org/en/publications/Fatfgeneral/outcomes-fatf-plenary-february-2024.html

[xxxviii] Electronic Fund Transfers (Regulation E), 12 CFR Part 1005, https://www.consumerfinance.gov/rules-policy/final-rules/electronic-fund-transfers-regulation-e/

[xxxix] Id.

[xl] 15 U.S.C. § 1693 et seq.

[xli] 31 CFR § 1010.410(f); Funds Travel Regulations Questions & Answers, Financial Crimes Enforcement Network, https://www.fincen.gov/resources/statutes-regulations/guidance/funds-travel-regulations-questions-answers

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GLI | Fintech Laws & Regulations 2024 | USA (2024)