If this proposal were signed into law, companies would have the legal right to negotiate an enforceable compliance agreement with specific departments or offices within the federal financial regulatory agencies. Should such an agreement be reached, it would clear the way for further regulatory action.
North Carolina Rep. Patrick McHenry, who is currently the ranking member of the House Financial Services Committee and will chair the committee starting in January, has reintroduced legislation intended to establish offices of innovation within the government agencies dealing with financial services.
In a statement that was released on December 19, 2018, McHenry stated that he has reintroduced the Financial Services Innovation Act, which is legislation he had previously lobbied for in 2016 and 2019.
The legislation was enacted with the intent to establish, within existing federal financial institutions, offices that could help innovators in the United States, including those working with cryptocurrency and blockchain technology, find a way to comply. with the regulations in force at that time. This was the main objective of the legislation.
According to McHenry, companies have the authority to request an enforceable compliance agreement with the offices of regulatory bodies, such as the Securities and Exchange Commission and the Commodity Futures Trading Commission. Such an agreement would make it possible for companies to move forward legally without being hampered by outdated or overly onerous restrictions, which would be a significant benefit to these companies.
He claimed that the law had been modeled after the regulatory sandbox program already in place in the state of North Carolina.
Several government agencies have made previous statements, notably the Office of the Comptroller of the Currency, regarding their ambitions to build innovation offices that would specialize in fintech. These announcements have occurred in the past.
The Securities and Exchange Commission (SEC) established the Strategic Center for Financial Technology and Innovation in 2018, and it is more commonly known as FinHub. In 2020, the center will become an independent agency.