The financial services industry is erupting with innovation today, and new and burgeoning technologies are being experimented with and implemented to keep pace with the changing times. Since technological advancements are never free from the menace of cybercrime, regulation becomes a prerogative of the governments worldwide. Leading the regulation front is America which has been quite active in ensuring the security of its citizens, investors and businesses, and also making efforts for understanding the current technological landscape. On 9 May, the United States House of Representatives Financial Services Committee announced its decision to form a special Task Force on Fintech.
The Thoughts Behind the Taskforce
Announcing the news, Maxine Waters, Head of the House Committee on Financial Services, noted:
“As new technologies emerge and the financial services industry puts those technologies to use, Congress must make sure that responsible innovation is encouraged, and that regulators and the law are adapting to the changing landscape to best protect consumers, investors and small businesses.”
The Congress hopes the task force would help formulate informed policies that would better ensure public protection, understand the Fintech lending domain, the infrastructure involved, and re-evaluate and learn from the challenges in ensuring data privacy.
Congressman Stephen Lynch Appointed as the Chair
Speaking on the matter, Stephen Lynch, appointed chair of the task force expressed his gratitude on being selected as the head of a body that will contribute to the better understanding of possibilities and challenges inherent in the fintech space that has been revolutionizing the lives of consumers while simultaneously exposing them to various risks. He further emphasized the need for the revaluation of current consumer protection standards to keep pace with the ever-evolving fintech sector.
Fintech Task Force and Crypto
Interestingly, many pro-cryptocurrency representatives have been selected to be a part of this team, like Tom Emmer, who came up with a series of crypto bills last year, including the Blockchain Regulatory Certainty Act and Warren Davidson, who put forward the Token Taxonomy Act before the Congress just last month to advocate better understanding of the blockchain domain. With their presence in the team, the role of cryptocurrencies and blockchain in the financial sector is sure to be examined.