Yesterday, the US House Financial Services Committee, led by Rep. Chairman Patrick McHenry, reported 13 pieces of legislation to the House of Representatives for consideration. Among the proposed reforms are bills that would advance regulatory oversight and accountability and promote innovation in the financial sector.
Included in the package is the "Fostering the Use of Technology to Uphold Regulatory Effectiveness in Supervision (FUTURES) Act." The FUTURES Act would require the Federal Reserve, Federal Deposit Insurance Corporation (FDIC), Office of the Comptroller of the Currency (OCC), Consumer Financial Protection Bureau (CFPB), and National Credit Union Administration (NCUA) to assess the challenges and risks resulting from their outdated supervisory technologies (SupTech). The regulators would report their findings jointly to Congress, and again every five years thereafter.
The Committee also reported an updated draft of the "Financial Services Innovation Act of 2024," which would establish Financial Services Innovation Offices (FSIOs) in each of the federal financial regulators and a federal sandbox for financial innovation. The FSIOs would be responsible for assessing how regulations impact innovation and for evaluating and approving alternative compliance agreements with firms that wish to offer innovative products and services.
"Technology has radically changed how consumers interact with the financial system, as well as how financial institutions interact with regulators," said Chairman McHenry when he reintroduced the Financial Services Innovation Act to the Committee last month. "This commonsense legislation will give entrepreneurs an opportunity to test legal and regulatory waters before taking new products and services to market."
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