Fintech Innovation

Unpublished Executive Order

This executive order was recently signed and has not yet been published in the Federal Register. This page will be updated once the official text has been published.

Summary

Makes financial rules simpler to help new technology companies (fintech) work with banks, grow, and create new products for people.

What problem does this solve?

Old and complicated government rules make it hard for new financial technology companies to start and compete with big banks. This order tells government agencies to find and remove these old rules to help new companies grow.

What does this order do?

Review of existing financial regulations

Requires federal financial regulators to review their rules and practices to find and identify ones that block innovation and competition from fintech firms.

Evaluation of Federal Reserve services access

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.

Action to encourage innovation

Directs federal financial regulators to take steps to encourage innovation based on the findings of their review of existing rules.

Transparent application process for Fed services

Requests the Federal Reserve to create a clear application process for non-bank companies to access its payment services if it is legally allowed.

Who does this affect?

Financial technology (fintech) firms
Banks and credit unions
Consumers of financial products

What is the real world impact?

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Encourages financial innovation

Supports the growth of new financial technology companies by making it easier for them to work with traditional banks and follow government rules. This could lead to new and better financial products for consumers.

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Increases competition in the financial sector

Removes rules that may favor existing big banks, allowing smaller, newer fintech companies to compete more fairly. This could result in lower costs and more choices for customers.

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Could weaken consumer protections

Critics might argue that simplifying rules for new and unproven technologies could expose consumers to greater risks, such as fraud or financial instability, without the same level of protection offered by traditional banks.

When does this start?

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

Review of regulations

Within 90 days of May 19, 2026, federal financial regulators must complete a review of existing regulations that could be updated to help fintech firms.

Federal Reserve report

Within 120 days of May 19, 2026, the Federal Reserve is asked to submit a report to the President about giving non-bank companies access to its payment systems.

Action to encourage innovation

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

Application processing for Fed services

If access is allowed, the Federal Reserve is asked to make decisions on complete applications for its payment services within 90 days of receiving them.

Integrating Financial Technology Innovation into Regulatory Frameworks