Fintech Innovation Order (E.O. 14405)

Summary

Aims to update financial rules to help new technology companies work with traditional banks and make financial services better and more accessible for everyone.

What problem does this solve?

Old and complicated financial rules make it hard for new technology companies to start and compete with big banks. This order tells government agencies to review and simplify these rules to encourage new ideas and partnerships in finance.

What does this order do?

Requires review of existing financial regulations

Orders federal financial regulators to check their current rules and practices to find ones that stop or slow down new ideas and competition from fintech companies.

Requests study on access to Federal Reserve services

Asks the Federal Reserve to study whether non-bank financial companies, including those using digital assets, can get direct access to the Federal Reserve's payment systems.

Removes barriers for fintech and bank partnerships

Directs agencies to find and change rules that make it hard for fintech firms to partner with banks, credit unions, and other regulated financial groups.

Simplifies application processes for fintech firms

Aims to make it easier for eligible fintech companies to apply for bank charters, deposit insurance, and other federal licenses needed to operate.

Who does this affect?

Financial technology (fintech) firms
Banks and credit unions
Federal financial regulators

What is the real world impact?

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Reduces regulatory burdens

Simplifies the rules for financial technology companies, which could be seen as a move to deregulate the financial sector. Critics might worry this could introduce new risks to the financial system if not balanced with consumer protection.

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Encourages financial innovation

Promotes new financial products and services by making it easier for technology companies to work within the financial system. This could lead to better options and lower costs for consumers.

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Increases competition in the financial industry

Removes rules that mainly benefit existing big banks, allowing smaller, newer companies to compete more fairly. This can drive down prices and improve service quality across the industry.

When does this start?

This order sets multiple deadlines for federal agencies to review regulations and report their findings.

Regulatory review deadline

Within 90 days of May 19, 2026, federal financial regulators must complete a review of existing regulations to identify barriers to innovation.

Federal Reserve report deadline

Within 120 days of May 19, 2026, the Federal Reserve Board is asked to submit a report to the President on giving non-bank firms access to its payment services.

Action to encourage innovation

Within 180 days of May 19, 2026, the head of each federal financial regulator must take steps to encourage innovation based on their review.