Trump's appointment of Sacks bodes well for smarter fintech regulation

As we progress toward January, the shape of the new administration is coming into sharper focus, bringing with it a critical opportunity to modernize outdated regulatory frameworks that have long hindered American fintechs and financial innovation. The early signals point to a shift toward balanced, forward-thinking regulations that could deliver meaningful benefits for consumers, small businesses and the broader U.S. economy.

The nomination of David Sacks as "AI & Crypto Czar" is a telling example of this shift, marking a decisive step toward leveraging the transformative power of technology in financial services.

The incoming administration should encourage and foster responsible innovation and protect consumers by bringing industry expertise to the table. This includes prioritizing leaders who genuinely understand fintech's potential, including consumer demand and protection, and its unique demands on regulatory frameworks.

For more than a decade, the fintech sector in the United States has been a force for transformative, responsible innovation, while expanding access to financial services in ways that traditional banking has long overlooked or ignored. Yet, regulators have struggled to appreciate and keep pace with rapid advances in technology and have instead stifled innovation through application and enforcement of outdated policies.

Read the full op-ed in American Banker’s BankThink here.