President Donald Trump signed an Executive Order on Tuesday directing regulators to take measures to promote fintech innovation, including an assessment of extending access to Federal Reserve payment rails.
Regulators Instructed To Do Away With 'Outdated' Laws The Executive Order specifically instructed the Fed to evaluate the potential for uninsured depositories and non-bank fintechs to access Fed payment accounts and services.
The Order also asked a report on the Fed's "legal authorities" to extend such access, expansion options subject to risk management requirements, and any "impediments" that hinder direct access.
The Order noted that fintech firms help provide" low-cost and efficient access" to financial markets, creating economic opportunities for all Americans.
"The Federal government must update its outdated regulations to allow integration of digital assets and other novel financial technology into traditional financial services and payment systems," the Order read.
