Page 18 - August 2018 Disruption Report Flip Book

REFORMING THE REGULATORY MOAT JAUNGUUASRTY 2018
REFORMING THE REGULATORY MOAT
The regulatory moat impedes the adoption of innovation
“I go to conferences and people say: what would you tell us to be more successful?” said Thomas Zeeb, head Securities & Exchanges at SIX Group AG in Zürich, Switzerland. “One thing, learn the regulations. There’re so many great ideas in the fintech space. One of the biggest problems we have as traditional firms is dealing with this regulation that ran amok over the last 10 years that generates a whole series of questions for fintech firms and managers with great ideas. You say: what about this? What about this? Have you thought about CSDR [Central Securities Depository Regulation—required by EU law]? Usually, they look at you with a blank face.” (Business Insider, Oscar Williams-Grut, 08/18/18)
Treasury proposes modernizing the administrative state to encourage innovation and the widespread adoption of digital technologies
Pursuant to Executive Order 13772, the Treasury Department issued the report, A Financial System That Creates Economic Opportunities Nonbank Financials, Fintech, and Innovation. In
this report, Treasury Secretary Steven T. Munchin and Counselor Craig S. Phillips identified laws, treaties, regulations, guidance, reporting, record keeping requirements, and other government policies that promote or inhibit federal regulation of the U.S. financial system in a manner consistent with the following Core Principles:
• Empower Americans to make independent financial decisions and informed choices in the marketplace, save for retirement, and build individual wealth;
• Prevent taxpayer-funded bailouts;
• Foster economic growth and vibrant financial markets through more rigorous regulatory impact analysis that addresses systemic risk and market failures, such as moral hazard and information asymmetry;
• Enable American companies to be competitive with foreign firms in domestic and foreign markets;
• Advance American interests in international financial regulatory negotiations and meetings;
• Make regulation efficient, effective, and appropriately tailored; and
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