Emmer Applauds CFPB Efforts to Foster Innovation for the Financial Services IndustrySeptember 13, 2019
Washington, D.C. – Today, Congressman Tom Emmer (MN-06) applauded the Consumer Financial Protection Bureau (CFPB) for further fostering innovation and reducing burdensome regulations that stifle the growth of financial technologies, or fintech. The CFPB issued three new policies: the No-Action Letter (NAL) Policy, Trial Disclosure Program (TDP) Policy, and Compliance Assistance Sandbox (CAS) Policy.
Under the No-Action Letter Policy, the CFPB built on the framework of their 2016 NAL Policy by providing a more streamlined review process which emphasizes the consumer benefits and specific risks of the product or service. This provides regulatory certainty and ensures the CFPB will not bring enforcement action against a financial services provider for testing a new product or service.
The CFPB also issued a new CAS Policy which allows testing of a financial product or service where there is regulatory uncertainty. Following the CFPB’s evaluation and determination that it complies with current law, they will be granted safe harbor from liability during the testing period. It also eliminates burdensome reporting requirements.
“Regulatory uncertainty hinders development and innovation. When this happens, consumers are the ones who suffer,” Congressman Emmer said. “These rules are a step towards fostering innovation in the financial markets. They will allow individuals the freedom to innovate and develop new technologies without unnecessary regulatory burdens. I am hopeful that additional agencies will take steps like these to provide certainty for innovators and foster investment in Minnesota as well as the United States.”
Congressman Emmer is a member of the House Financial Services Committee’s Task Force on Financial Technology, and a co-chair of the Blockchain Caucus.