Fintech: California Pushes New Fintech Regulations

January 13, 2020 | FinTech, Investments, News
https://dailyalts.com/wp-content/uploads/2020/01/57e6d5464f52b114a6d98074cf213576083edbe25b567448722f7f_640.png

Gavin Newsom plans to spend more money on regulations

The State of California could soon overhaul the regulatory oversight of financial technology companies. Governor Gavin Newsom released details of his 2020-2021 budget. Inside, the proposal includes a provision to make the California Department of Business Oversight as the regulator of fintech companies. The agency would also regulate debt collectors, credit reporting agencies, and other firms tied to consumer finance.

The state would rename the agency of the Department of Financial Protection and Innovation (DFPI). In addition to regulatory efforts, the new agency would aim to increase innovation across the state.

State of California and Fintech Oversight

The remodeled agency would have expanded powers to address “abusive” acts or financial practices. It would also focus on identifying and policing unfair and deceptive acts and practices (UDAP).

The state of California has made this proposal as a direct response to Newsom’s belief that the Federal government hasn’t done enough to address consumer protection. Newsom believes that the Trump administration has limited government oversight and reduced the efficiency of the Consumer Financial Protection Bureau.

“They’re getting out of the financial protection business. We’re getting into it,” Newsom said at a press conference.

“We’re going to protect consumers from unfair and deceptive practices better than we have,” he later said.

The new department would also have a four-person panel dedicated to fintech innovation. It would also aim to liberalize banking laws that would allow fintech firms to operate across the United States while still reporting to the Department of Business Oversight.

Newsom’s press conference on Friday lasted nearly three hours as he outlined the state’s $222 billion budget. Newsome referenced President Donald Trump repeatedly during the speech. He mentioned Trump on every policy issue, including healthcare, climate change, school lunches, and homelessness. Newsom also argued that California aims to assert itself and address the things that he believes the Federal government cannot.

Recent: FinTech: Ripple Targets SWIFT in Brazil

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Shape

Latest Alternative Investment News

https://dailyalts.com/wp-content/uploads/2021/01/dragon-872933_640.jpg
FinTech: China Tightens Antitrust Regulatory Screws On Fintechs
January 22, 2021     FinTech, Latest News, News, Regulations

The People’s Bank of China published a draft set of rules on Wednesday for anti-trust regulation of the non-bank payment providers in the fintech sector. The draft is in the…

https://dailyalts.com/wp-content/uploads/2021/01/bitcoin-4353069_640.jpg
Digital Assets: BlackRock Dips Its Toes In Bitcoin Waters
January 22, 2021     Digital Assets, Latest News, News

Filings out Wednesday show that the BlackRock Strategic Income Opportunities Portfolio and BlackRock Global Allocation Fund may invest in cash-settled bitcoin futures, among other assets. BlackRock (NYSE: BLK), the world’s…

https://dailyalts.com/wp-content/uploads/2021/01/summer-169643_640.jpg
Artificial Intelligence: AI Helping Manage Wind Farms By Forecasting Wind Conditions
January 22, 2021     Artificial Intelligence, News

AI is playing an increasingly bigger role in the management of wind energy, wind farms, and the maintenance of wind turbines through machine condition monitoring systems. Google (NASDAQ: GOOGL) predicts…

https://dailyalts.com/wp-content/uploads/2021/01/electric-car-2783573_640.jpg
Alternative Investments/ESG: Harvest Portfolios Launches The Harvest Clean Energy ETF

Harvest Portfolios Group Inc. completed last week the initial offering of Class A Units of the Harvest Clean Energy ETF (TSE: HCLN). The units of the ETF commenced trading on…