WASHINGTON — The Commodity Futures Trading Commission is seeking public input on ways to reduce regulatory barriers that may hinder partnerships between financial technology firms and federally regulated financial institutions, according to a request for information announced by the agency.
The CFTC said in a statement that it has issued a Request for Information (RFI) aimed at identifying regulations, guidance documents, orders, no-action letters and other regulatory requirements that may unnecessarily impede fintech companies from forming partnerships with federally regulated institutions.
According to the agency, the review will also help identify CFTC rules and procedures that could be amended to streamline application processes for eligible fintech firms and support greater innovation and competition within financial markets.
“The Request for Information will assist the Commission in complying with its obligations under Executive Order 14405,” the CFTC said in the release. “Additionally, the Request for Information will help the Commission identify which CFTC regulatory item(s) could be updated to facilitate innovation and competition for FinTech firms.”
Comment Open for 21 Days
The public comment period will remain open for 21 days following publication of the RFI in the Federal Register, the agency said. Comments may be submitted electronically through Regulations.gov or through other methods outlined in the request. Submitted comments will be posted publicly on Regulations.gov.
The initiative follows the signing of Executive Order 14405, “Integrating Financial Technology Innovation into Regulatory Frameworks,” by Donald Trump on May 19.
According to a White House fact sheet issued at the time, the executive order directs federal financial regulators to review existing regulations, guidance, supervisory practices and application processes that could be updated to encourage financial innovation and competition while maintaining safety and soundness standards.
White House Statement
“To foster Americans’ ability to benefit from these services, the federal government must update its outdated regulations to allow integration of digital assets and other novel financial technology into traditional financial services and payment systems,” the White House said in the fact sheet.
The latest action is part of a broader review by the CFTC of emerging financial technologies and markets.
In March, the agency issued an advance notice of proposed rulemaking seeking public comment on whether it should amend existing regulations or adopt new rules governing event contracts traded on prediction markets.
More Info Being Sought
The CFTC said it is seeking information on how its regulations should apply to prediction markets, what types of event contracts may be contrary to the public interest and therefore prohibited, and the potential costs and benefits associated with prediction-market trading.
The agency said feedback from both initiatives will help inform future regulatory decisions as it evaluates how to modernize oversight while fostering innovation in financial services and derivatives markets.
