FTA Responds to OMB Request for Information on Deregulation
The Financial Technology Association (FTA) submitted a comment letter in response to the Office of Management and Budget’s Request for Information on Deregulation. In the letter, FTA outlines recommendations to modernize and right-size financial regulation, remove outdated or burdensome rules, and ensure a regulatory environment that fosters innovation and competition.
The letter identifies specific rules and policies that FTA believes should be rescinded or revised due to their detrimental impact on innovation, competition, and consumer access to modern financial tools. These include:
The Consumer Financial Protection Bureau (CFPB)’s Registry of Nonbank Covered Persons Rule
The proposed interpretive rule applying Truth in Lending Act requirements to Earned Wage Access products
The interpretive rule applying credit card protections to Buy Now, Pay Later loans
The proposed rule on data broker practices under Regulation V
Financial Stability Oversight Council (FSOC)’s guidance on nonbank financial company determinations
Securities and Exchange Commission (SEC)’s proposed rule on conflicts of interest associated with the use of predictive data analytics by broker-dealers and investment advisers
CFPB circulars, statements of policy, FAQs, and several other rules and proposals that create compliance uncertainty or inhibit responsible fintech growth.
FTA also proposes proactive reforms, such as modernizing the Financial Crimes Enforcement Network (FinCEN)’s Customer Identification Program (CIP) rule, improving anti-money laundering frameworks, and revising the Small Business Lending Rule. The letter calls for coordinated agency action, codified innovation offices, expanded access to Fed payment systems, and preemption clarity to reduce compliance burdens.
FTA Responds to OMB Request for Information on Deregulation
The Financial Technology Association (FTA) submitted a comment letter in response to the Office of Management and Budget’s Request for Information on Deregulation. In the letter, FTA outlines recommendations to modernize and right-size financial regulation, remove outdated or burdensome rules, and ensure a regulatory environment that fosters innovation and competition.
The letter identifies specific rules and policies that FTA believes should be rescinded or revised due to their detrimental impact on innovation, competition, and consumer access to modern financial tools. These include:
FTA also proposes proactive reforms, such as modernizing the Financial Crimes Enforcement Network (FinCEN)’s Customer Identification Program (CIP) rule, improving anti-money laundering frameworks, and revising the Small Business Lending Rule. The letter calls for coordinated agency action, codified innovation offices, expanded access to Fed payment systems, and preemption clarity to reduce compliance burdens.
Read the full letter here.