Integrating Financial Technology Innovation Into Regulatory Frameworks
The order directs six federal financial regulators to review rules that may block fintech firms from partnering with banks or obtaining federal licenses, then take steps to reduce those barriers — and separately requests the Federal Reserve to evaluate whether fintech and other non-traditional financial companies can gain direct access to Federal Reserve payment accounts.
It is the first executive order to formally push regulators and the Fed to open traditional financial infrastructure to fintech entrants, though all concrete policy changes depend on future agency action and potential rulemaking.
What this order does
What it orders
The order directs the heads of six named federal financial regulators — the CFPB, SEC, NCUA, CFTC, FDIC, and OCC — to first review existing regulations, guidance, supervisory practices, and application processes that may impede fintech firms, especially small and emerging ones, from partnering with federally regulated institutions or obtaining bank charters, deposit insurance, and other federal licenses. Within 180 days, those same regulators must take concrete steps to encourage innovation based on those reviews, in consultation with the Assistant to the President for Economic Policy. The order also requests the Federal Reserve Board to submit a report evaluating the legal, regulatory, and policy framework governing access to Reserve Bank payment accounts and services by uninsured and non-bank financial companies, including those active in digital assets.
The order does not itself change any regulation, revoke any existing rule, or grant fintech firms any new legal right. All operative impact depends on the reviews and reports the agencies complete, followed by future rulemaking or policy revisions. The order uses "requested" rather than "directed" language when addressing the Federal Reserve Board, reflecting its independent status.
Who it affects
Fintech firms — especially small and emerging non-bank companies offering payments, lending, digital assets, or brokerage services — that seek to partner with banks or obtain federal licenses. Federally regulated banks, credit unions, broker-dealers, and investment advisers that fintech firms want to partner with are also in scope.
Why it matters
Fintech companies currently blocked by fragmented rules from partnering with banks or obtaining federal charters could face fewer barriers if regulators follow through. Companies active in digital assets and instant payments could gain access to Federal Reserve payment infrastructure if the Fed's evaluation finds legal grounds to permit it.
What must happen and when
How the order is supposed to work
The order runs in two parallel tracks. On the regulatory track, six agencies must complete reviews within 90 days and implement changes within 180 days, coordinating with the White House economic policy office; enforcement of those deadlines rests with that office, not with the order itself. On the Federal Reserve track, the Board — which is independent and thus only "requested," not directed — must deliver a report within 120 days and, if it finds legal authority, establish transparent application procedures with 90-day decision windows for covered firms seeking payment account access. No sunset or severability clause applies; implementation is subject to available appropriations.
Actions and deadlines
- Each federal financial regulator reviews regulations, guidance, and application processes impeding fintech firms
- Federal Reserve Board submits report on legal framework for fintech access to Reserve Bank payment accounts
- Each federal financial regulator takes steps to encourage fintech innovation based on completed reviews
- Federal Reserve Board establishes transparent application procedures for covered firms to access Reserve Bank payment accounts, if legally permissible