Congress Worries About FDIC’s Regulating FinTech and Financial Innovation.

February 12, 2024
1 min read

TLDR: Three Republican members of the House Financial Services Committee have sent a letter to Federal Deposit Insurance Corporation (FDIC) Chair Martin Gruenberg expressing concern about the FDIC’s approach to regulation of fintech firms and financial innovation. They are particularly concerned about the dismantling of the FDIC’s external-facing FDITech Office, which they believe has shifted the Office’s focus away from competition and innovation in the financial sector. The congressmen also express concerns about the lack of publicly available information about how the FDIC’s approach to innovation will affect examinations, and whether it will comply with the FDIC’s Compliance Examination Manual. They request additional information from the FDIC about its strategy and engagement with industry participants.

The congressmen’s letter is especially relevant given the FDIC’s increased scrutiny of bank-fintech partnerships. The requested information could provide more clarity on regulators’ expectations in the sector. The congressmen ask for responses by February 29, 2024.

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