Regulating the future

Author: | Published: 8 Aug 2019

What happens when a complex legal and regulatory system tries to address fast-paced innovation? Todd Beauchamp, Stephen Wink, Yvette Valdez, Alan Avery, Loyal Horsley and Deric Behar of Latham & Watkins discuss the challenges facing US regulators

The US has always been at the forefront of technological innovation but recent drastic advances have truly revolutionised certain sectors of the average American's life. Financial services have been and continue to be reshaped by technology. Fintech aims to introduce new products, services and efficiencies – or to disintermediate traditional access points – to the way people bank, transfer money, borrow and invest. But where entrepreneurs see opportunity, regulators often see risk.

Financial services is one of the more heavily regulated industries, in the US and globally and regulation has not kept pace with the changes imposed by fintech. The US financial regulatory system is complex and a bit unwieldy: there are...