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Congressman David Scott (D-GA) and Congressman Barry Loudermilk (R-GA) Introduce Bipartisan Legislation Setting up Federal Financial Regulatory Clarity for Startup Fintech Companies

Today Congressman David Scott (GA-13), a senior member of the House Financial Services Committee and Co-Chairman of the bipartisan Fintech and Payments Caucus, and Congressman Barry Loudermilk (GA-11) introduced H.R. 1491, the FINTECH Act of 2019.

Congressman Scott said, “My home state of Georgia is a dynamic, fast-growing national leader of fintech and payment companies, and it is very important for us in Congress to be proactive and help our fintechs get prepared to safely and successfully navigate our complex, multi-faceted federal financial regulatory structure.”

Congressman Barry Loudermilk, also a member of the House Financial Services Committee and Co-Chair of the bipartisan Fintech and Payments Caucus, agreed with Congressman Scott saying, “As startup companies develop new technologies that help consumers take more control of their finances, they risk an onslaught of government agencies rushing in with new regulations. The mad dash for regulatory control often results in conflicting regulations from multiple agencies, which stifles innovation, ultimately harming consumers.  Georgia is a leader in fintech and payments processing, and our bill will help these job creators grow and thrive by streamlining and clarifying the regulatory process for startup fintech companies. I appreciate my friend, Congressman David Scott, for his leadership on this important legislation.”

Our FINTECH Act of 2019 does the following two important and essential things:

1.     mandates federal financial regulatory harmonization:

Meaning that each federal financial regulator that regulates fintechs must harmonize, coordinate, and eliminate any duplication and any conflicting regulations with any other federal regulator who would regulate fintechs. 

2.     establishes a Point of Entry for fintechs into the federal regulatory structure:

Meaning that within the United States Treasury Department, the FINTECH Act of 2019 creates a Fintech Council to serve as a single point of entry into the federal financial regulatory system; allowing fintechs who meet certain requirements to be assigned one or more designated regulator(s) through which regulatory action is funneled.