Regulatory challenges in Fintech are usually related to striking a balance between fostering innovation and protecting consumers from financial crime and loss. This has not come with ease. The debate over whether some digital assets should be categorized as commodities or securities is a prime example.

For one thing, Fintech products often blur the lines between traditional financial services and emerging technologies. With new business models and products, regulatory and compliance risks tend to expand at a rapid pace.

Nevertheless, countries around the world are continually adapting financial regulations to respond to Fintechs’ unique offerings. The regulatory gap is closing slowly but surely.

In this article, we explore some of the major regulatory developments that relate to US Fintechs. But first, let’s answer the following question