US regulators sign up to Global Financial Innovation Network
A collection of US regulators have signed up to the Global Financial Innovation Network, (GFIN), joining 46 other regulators, banks and companies.
The Commodity Futures Trading Commission (CFTC), Federal Deposit Insurance Corporation (FDIC), Office of the Comptroller of the Currency (OCC), and the Securities and Exchange Commission (SEC) today announced their addition to the GFIN.
GFIN, formally launched in February 2019, is a cross-border regulatory testing ground. It seeks to provide a more efficient way for firms to interact with regulators, helping them navigate between countries as they look to scale new ideas.
This includes a pilot for firms wishing to test innovative products, services or business models across more than one jurisdiction. It also looks to create a new framework for co-operation between financial services regulators on innovation related topics, sharing different experiences and approaches.
“US financial regulators have taken proactive steps in recent years to enhance regulatory clarity and understanding for all stakeholders and promote early identification of emerging regulatory opportunities, challenges, and risks,” reads a joint statement from the US bodies.
“Participation in the GFIN furthers these objectives and enhances the agencies’ abilities to encourage responsible innovation in the financial services industry in the United States and abroad.
“By promoting knowledge-sharing on innovation in financial services, U.S. members of GFIN will seek to advance financial and market integrity, consumer and investor protection, financial inclusion, competition, and financial stability.”
The news follows the rejection by a US judge of the OCC’s ambitious Fintech Charter, which would have allowed new fintech companies the ability to gain a licence across all 50 states, rather than having to deal with each states’ regulators individually.