The U.S. Consumer Financial Protection Bureau (CFPB) has launched a fintech regulatory sandbox, acting director Mick Mulvaney said this week, according to report from the Wall Street Journal.
The regulatory sandbox will help fintech firms develop and test new products and services. The team will be led by Paul Watkins, who was recently selected to lead the Bureau’s new Office of Innovation.
Watkins joined the Bureau from the Arizona Office of the Attorney General, where he was in charge of the office’s fintech initiatives. He managed the FinTech Regulatory Sandbox, the first state fintech sandbox in the country, which allows companies limited access to the marketplace in exchange for relaxing some regulations.
In an official announcement, the bureau said that the innovation office has been established to focus on encouraging consumer-friendly innovation. It will focus on creating policies to facilitate innovation, engaging with entrepreneurs and regulators, and reviewing outdated or unnecessary regulations.
In an interview, Mulvaney said that he expects the innovation office to look closely at emerging financial technologies, including blockchain and cryptocurrencies.
The UK Financial Conduct Authority is one of the first regulators in the world to have established a regulatory sandbox. It recently announced the fourth round of the regulatory sandbox, which has selected 29 firms, which includes over 10 blockchain and crypto asset firms.
