Integrating Financial Technology Innovation into Regulatory Frameworks
This Presidential Action establishes a policy framework to foster financial innovation by integrating financial technology (fintech) into traditional financial services and payment systems.
The order directs Federal financial regulators to review and update regulations, guidance, and supervisory practices within 90 days to reduce barriers for fintech firms, especially those seeking partnerships or bank/credit union charters.
Furthermore, the President requests the Board of Governors of the Federal Reserve System to conduct a comprehensive evaluation, report within 120 days, and potentially establish transparent procedures for granting direct access to Reserve Bank payment services for uninsured depository institutions and non-bank financial companies involved in novel activities like digital assets.
Arguments For
Fostering Economic Growth and Competition: Streamlining regulations and reducing barriers to entry allows smaller fintech firms to compete with larger, incumbent financial institutions, potentially leading to wider access to financial products and services for consumers.
Modernizing Financial Services: The directive encourages the integration of digital assets and innovative technology into traditional payment systems, positioning the U.S. as a leader in financial innovation.
Enhancing Regulatory Efficiency: Mandating reviews of existing regulations and supervisory practices aims to remove processes that unduly impede partnerships between fintechs and established institutions, promoting operational efficiency.
Improving Access to Core Services: Requesting the Federal Reserve to evaluate direct access to Reserve Bank payment accounts and services for uninsured depository institutions and non-bank financial companies addresses a long-standing hurdle for modern payment providers.
Arguments Against
Risk to Financial Stability: Rapid integration of novel technologies and digital assets without thorough vetting of risk management practices could introduce new vulnerabilities to the payment system and overall financial stability.
Consumer and Investor Protection Concerns: The emphasis on streamlining entry and reducing burdens might inadvertently lower protective standards for consumers and investors if not balanced carefully with safety and soundness concerns.
Implementation Complexity and Pace: Requiring numerous Federal financial regulators to conduct comprehensive reviews (within 90 or 180 days) and the Federal Reserve to complete a complex evaluation (within 120 days) presents significant administrative and coordination challenges.
Regulatory Fragmentation Risk: If Federal Reserve Banks act independently in granting access due to a lack of consistent FRB-level policy, it could lead to an inconsistent and fragmented regulatory environment across different districts.
Presidential Actions
By the authority vested in me as President by the Constitution and the laws of the United States of America, it is hereby ordered:
Section 1. Policy. The United States is a global leader in financial innovation, driven in part by the rapid growth of financial technology (fintech) firms. These firms provide innovative services and solutions that enhance access to financial products and services and create economic opportunity for all Americans. To foster this financial innovation, the Federal Government must update regulations to allow integration of digital assets and innovative technology into traditional financial services and payment systems. The Federal Government must also remove overly burdensome and fragmented regulations and supervisory practices that form barriers to entry and primarily benefit incumbent financial services firms.
It is therefore the policy of the United States to streamline regulatory processes, reduce unnecessary barriers to entry, and encourage collaboration between fintech firms, federally regulated financial institutions, and Federal financial regulators.
Sec. 2. Definitions. For the purposes of this order: (a) “Fintech firm” refers to a non-bank company that uses or develops technological means to offer or support the offering of financial products or services, including, but not limited to, any application or any digital or online technology that facilitates access to, management of, or data processing for financial products or services. Such financial products or services may include, but are not limited to, payment processing, lending, deposit-taking, derivatives, investment management, brokerage services, underwriting and capital-market activities, custodial and fiduciary services, digital banking, digital asset-related services, securities and commodities market activities, and blockchain-based services. For the avoidance of doubt, such financial products or services also include the activities set forth in paragraphs (A) through (G) of section 4(k)(4) of the Bank Holding Company Act of 1956 (12 U.S.C. 1843(k)(4)).
(b) “Bank” has the meaning given that term in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813).
(c) “Credit union” means an “insured credit union”, as defined in section 101 of the Federal Credit Union Act (12 U.S.C. 1752(7)).
(d) “Financial products and services” refer to activities permissible under Federal or State law for a bank or credit union to undertake as well as the financial activities listed in Appendix A to 12 CFR Part 242.
(e) “Federal financial regulators” refers to the Consumer Financial Protection Bureau, the Securities and Exchange Commission, the National Credit Union Administration, the Commodity Futures Trading Commission, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency.
Sec. 3. Streamlining Regulatory Processes. (a) Within 90 days of the date of this order, the head of each Federal financial regulator shall conduct a review of existing regulations, guidance, supervisory practices, and application processes to identify those that could be updated to facilitate innovation, and competition to financial products and services for fintech firms, particularly those that are small and emerging. The reviews shall identify regulations, guidance documents, orders, no-action letters, and other items that unduly impede fintech firms from entering into partnerships with federally regulated institutions (including insured depository institutions, credit unions, broker-dealers, investment advisers, and futures commission merchants), as well as regulations, guidance documents, orders, no-action letters, and other items that could be amended to streamline application processes for eligible fintech firms seeking bank charters, credit union charters, deposit or share insurance, and other Federal licenses, registrations, and authorizations, balancing innovation interests with the importance of safety and soundness, consumer and investor protection, market integrity, financial stability, and oversight.
(b) Within 180 days of the date of this order, the head of each Federal financial regulator shall, in consultation with the Assistant to the President for Economic Policy, take steps to encourage innovation as a result of the review described in subsection (a) of this section.
Sec. 4. Access to Federal Reserve Services. (a) The Board of Governors of the Federal Reserve System (FRB) is requested to complete the actions described in section 3 of this order.
(b) The FRB is requested to conduct a comprehensive evaluation of the legal, regulatory, and policy framework governing access to Reserve Bank payment accounts and payment services by uninsured depository institutions and non-bank financial companies, including those engaged in digital assets and other novel financial activities (collectively, covered firms), and those functioning as direct participants in real-time (instant) payment networks. Within 120 days of the date of this order, the FRB is requested to submit a report to the President, through the Assistant to the President for Economic Policy, setting forth its findings, options, and any recommendations. The evaluation is requested to assess:
(i) the legal authority of the Federal Reserve, under the Federal Reserve Act and other applicable Federal law, to extend direct access to Federal Reserve payment accounts and payment services to covered firms;
(ii) options for expanding such access to the extent permitted by law, subject to appropriate risk management requirements;
(iii) legal impediments that preclude direct access and a detailed analysis of those impediments, and legislative or regulatory options that would enable such access while mitigating risks to the payment system, financial stability, and the United States economy; and
(iv) whether, and if so to what extent, each of the 12 Federal Reserve Banks has legal authority to act independently of the FRB in granting or denying access to Reserve Bank payment accounts and payment services and, if independent action and decisions by individual Federal Reserve Banks is legally permissible, what FRB-level regulations or policies the FRB has established or proposes to establish to ensure that covered firms are evaluated on a consistent basis regardless of which Federal Reserve Bank receives or processes their applications.
(c) To the extent the FRB determines, pursuant to its review under subsection (b) of this section, that existing law permits the extension of direct access for covered firms to Reserve Bank payment accounts and payment services, the FRB is requested to establish transparent application procedures for such access and to make determinations with respect to complete applications within 90 days of the application date for such access.
Sec. 5. General Provisions. (a) Nothing in this order shall be construed to impair or otherwise affect:
(i) the authority granted by law to an executive department or agency, or the head thereof; or
(ii) the functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals.
(b) This order shall be implemented consistent with applicable law and subject to the availability of appropriations.
(c) This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.
(d) The costs for publication of this order shall be borne by the Department of the Treasury.
DONALD J. TRUMP
THE WHITE HOUSE,
May 19, 2026.
The post Integrating Financial Technology Innovation into Regulatory Frameworks appeared first on The White House.
The document is titled "Presidential Actions" and establishes the foundation for the order.
The navigation elements indicate this document is part of the broader Presidential Actions section of the White House website.
Section 1 outlines the document's policy: the United States must update regulations to incorporate financial technology (fintech) and digital assets while removing burdensome rules that favor established financial firms.
The overall goal is to streamline regulation and boost collaboration between fintech companies and traditional financial institutions.
Section 1. Policy. The United States is a global leader in financial innovation, driven in part by the rapid growth of financial technology (fintech) firms. These firms provide innovative services and solutions that enhance access to financial products and services and create economic opportunity for all Americans. To foster this financial innovation, the Federal Government must update regulations to allow integration of digital assets and innovative technology into traditional financial services and payment systems. The Federal Government must also remove overly burdensome and fragmented regulations and supervisory practices that form barriers to entry and primarily benefit incumbent financial services firms.
It is therefore the policy of the United States to streamline regulatory processes, reduce unnecessary barriers to entry, and encourage collaboration between fintech firms, federally regulated financial institutions, and Federal financial regulators.
This section declares the policy guiding the action.
It recognizes the U.S. leadership in financial innovation driven by fintech firms that improve access to financial services.
The Federal Government must therefore update regulations to better integrate digital assets and new technologies into finance and payment systems.
Crucially, the policy mandates removing regulations and supervisory practices deemed overly burdensome or fragmented, which currently serve as entry barriers benefiting incumbent firms.
The ultimate aim is to streamline processes, lower entry barriers, and foster cooperation among fintechs, regulated institutions, and federal regulators.
Sec. 2. Definitions. For the purposes of this order: (a) “Fintech firm” refers to a non-bank company that uses or develops technological means to offer or support the offering of financial products or services, including, but not limited to, any application or any digital or online technology that facilitates access to, management of, or data processing for financial products or services. Such financial products or services may include, but are not limited to, payment processing, lending, deposit-taking, derivatives, investment management, brokerage services, underwriting and capital-market activities, custodial and fiduciary services, digital banking, digital asset-related services, securities and commodities market activities, and blockchain-based services. For the avoidance of doubt, such financial products or services also include the activities set forth in paragraphs (A) through (G) of section 4(k)(4) of the Bank Holding Company Act of 1956 (12 U.S.C. 1843(k)(4)).
(b) “Bank” has the meaning given that term in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813).
(c) “Credit union” means an “insured credit union”, as defined in section 101 of the Federal Credit Union Act (12 U.S.C. 1752(7)).
(d) “Financial products and services” refer to activities permissible under Federal or State law for a bank or credit union to undertake as well as the financial activities listed in Appendix A to 12 CFR Part 242.
(e) “Federal financial regulators” refers to the Consumer Financial Protection Bureau, the Securities and Exchange Commission, the National Credit Union Administration, the Commodity Futures Trading Commission, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency.
This section provides essential definitions needed to implement the order.
A "Fintech firm" is defined broadly as a non-bank company using technology to offer or support financial services, explicitly including digital asset services and activities defined under the Bank Holding Company Act.
It also defines "Bank" and "Credit Union" by referencing relevant statutes. "Financial products and services" include activities allowed for banks or credit unions, plus those listed in a specific federal regulation (12 CFR Part 242 Appendix A).
Finally, it lists the specific agencies designated as "Federal financial regulators" for the purpose of this order.
Sec. 3. Streamlining Regulatory Processes. (a) Within 90 days of the date of this order, the head of each Federal financial regulator shall conduct a review of existing regulations, guidance, supervisory practices, and application processes to identify those that could be updated to facilitate innovation, and competition to financial products and services for fintech firms, particularly those that are small and emerging. The reviews shall identify regulations, guidance documents, orders, no-action letters, and other items that unduly impede fintech firms from entering into partnerships with federally regulated institutions (including insured depository institutions, credit unions, broker-dealers, investment advisers, and futures commission merchants), as well as regulations, guidance documents, orders, no-action letters, and other items that could be amended to streamline application processes for eligible fintech firms seeking bank charters, credit union charters, deposit or share insurance, and other Federal licenses, registrations, and authorizations, balancing innovation interests with the importance of safety and soundness, consumer and investor protection, market integrity, financial stability, and oversight.
(b) Within 180 days of the date of this order, the head of each Federal financial regulator shall, in consultation with the Assistant to the President for Economic Policy, take steps to encourage innovation as a result of the review described in subsection (a) of this section.
Section 3 requires each Federal financial regulator to review its current regulations, guidance, supervision methods, and application procedures within 90 days.
The review must pinpoint areas that hinder innovation and competition for small and emerging fintech firms.
Regulators must identify rules that impede partnerships between fintechs and established financial entities, and processes that slow down fintechs seeking licenses or bank/credit union charters.
This evaluation must balance promoting innovation against maintaining safety, soundness, consumer protection, and financial stability.
After the review, within 180 days, each regulator must consult with the Assistant to the President for Economic Policy and take actions resulting from the review to encourage innovation.
Sec. 4. Access to Federal Reserve Services. (a) The Board of Governors of the Federal Reserve System (FRB) is requested to complete the actions described in section 3 of this order.
(b) The FRB is requested to conduct a comprehensive evaluation of the legal, regulatory, and policy framework governing access to Reserve Bank payment accounts and payment services by uninsured depository institutions and non-bank financial companies, including those engaged in digital assets and other novel financial activities (collectively, covered firms), and those functioning as direct participants in real-time (instant) payment networks. Within 120 days of the date of this order, the FRB is requested to submit a report to the President, through the Assistant to the President for Economic Policy, setting forth its findings, options, and any recommendations. The evaluation is requested to assess:
(i) the legal authority of the Federal Reserve, under the Federal Reserve Act and other applicable Federal law, to extend direct access to Federal Reserve payment accounts and payment services to covered firms;
(ii) options for expanding such access to the extent permitted by law, subject to appropriate risk management requirements;
(iii) legal impediments that preclude direct access and a detailed analysis of those impediments, and legislative or regulatory options that would enable such access while mitigating risks to the payment system, financial stability, and the United States economy; and
(iv) whether, and if so to what extent, each of the 12 Federal Reserve Banks has legal authority to act independently of the FRB in granting or denying access to Reserve Bank payment accounts and payment services and, if independent action and decisions by individual Federal Reserve Banks is legally permissible, what FRB-level regulations or policies the FRB has established or proposes to establish to ensure that covered firms are evaluated on a consistent basis regardless of which Federal Reserve Bank receives or processes their applications.
(c) To the extent the FRB determines, pursuant to its review under subsection (b) of this section, that existing law permits the extension of direct access for covered firms to Reserve Bank payment accounts and payment services, the FRB is requested to establish transparent application procedures for such access and to make determinations with respect to complete applications within 90 days of the application date for such access.
Section 4 addresses access to the Federal Reserve System.
The Board of Governors of the Federal Reserve System (FRB) is asked to carry out the reviews mandated in Section 3.
Separately, the FRB is requested to evaluate the framework for Reserve Bank payment account and service access for uninsured depository institutions and non-bank firms dealing with digital assets ("covered firms").
The FRB must report its findings, options, and recommendations to the President within 120 days.
The evaluation must examine the FRB’s legal authority to grant direct access, options to expand access while managing risk, legal obstacles, and potential legislative fixes.
Additionally, the review must determine if individual Federal Reserve Banks can grant access independently and, if so, what consistent FRB-level policies should be established.
If direct access is legally permissible, the FRB is requested to create transparent application procedures and decide on complete applications within 90 days.
Sec. 5. General Provisions. (a) Nothing in this order shall be construed to impair or otherwise affect:
(i) the authority granted by law to an executive department or agency, or the head thereof; or
(ii) the functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals.
(b) This order shall be implemented consistent with applicable law and subject to the availability of appropriations.
(c) This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.
(d) The costs for publication of this order shall be borne by the Department of the Treasury.
DONALD J. TRUMP
THE WHITE HOUSE,
May 19, 2026.
The post Integrating Financial Technology Innovation into Regulatory Frameworks appeared first on The White House.
Section 5 outlines general provisions and limitations.
It clarifies that the order does not affect the legal authority of executive departments or agencies, nor does it infringe upon the budgetary or administrative functions of the Director of the Office of Management and Budget (OMB).
Implementation must align with existing law and available funding.
Furthermore, this order does not create any enforceable legal rights or benefits for any party against the government or any other person.
Publication costs for this order are assigned to the Department of the Treasury.
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