The ongoing regulation of fintech has been an issue of great concern for regulatory bodies across the world. In the wake of last summer’s crypto crash, some prominent lawmakers in the U.S. have been advocating for a major crackdown on how fintech companies do business.
On February 8th, the industry was given the chance to defend itself as Financial Technology Association (FTA) President and Chief Executive Officer Penny Lee testified before the House Subcommittee on Financial Institutions and Monetary Policy. Speaking from her position at the heart of the fintech revolution, Lee advocated for the benefits brought to the national and global economies by fintechs. While heightened scrutiny by the federal government may be necessary to prevent future crashes, Lee argued, the importance of fintech cannot be underestimated in the rush to regulate.
“Digital tools are putting people in control of their finances and making it easier and cheaper to move, save, manage, keep, and invest money,” Lee testified. “Proper use of consumer financial data is the future and will underpin a more fair, accessible, and inclusive financial system for all American consumers and small businesses.”