Congressmen McHenry & McCarthy Launch “Innovation Initiative” to Boost Fintech

Top House Republicans are preparing a legislative package aimed at removing regulatory constraints to financial-technology companies. Rep. Patrick McHenry (R-NC), a co-author of the "Innovation Initiative," said during his remarks at an event on Thursday, March 17th, "Here in Washington our regulators are more interested [in forcing] fintech companies into regulatory categories that are much more fitting with the 1930s, the 1940s and the 1950s. We have to update these systems here in Washington to meet these new categories."

The legislative package is expected to come out in mid-April. Despite his high hopes "that we can legislate in this key area this year," McHenry acknowledged it's an uphill battle in an election cycle. As noted by Isaac Boltansky, an analyst at Compass Point Research & Trading, the forthcoming "Innovation Initiative," which is also authored by Rep. Kevin McCarthy (R-CA), "will face a series of particular hurdles which make passage unlikely.”

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