“Not every innovation is appropriate for a regulated financial institution, and not every innovation that is appropriate for a regulated institution is appropriate for all regulated institutions,” Thomas J. Curry, the comptroller of the currency, said. CreditDaniel Rosenbaum for The New York Times
SAN FRANCISCO — Getting a financial start-up off the ground is tough enough.
The likelihood of incurring huge legal fees to secure money transmission licenses in all 50 states makes it that much harder. Yet that is what some digital currency start-ups face as a result of a bewildering hodgepodge of regulations across state and national lines that can make it difficult even to know which rules apply.
Hoping to remove at least some of the burden, government agencies in the United States and elsewhere have been increasing their efforts to update the regulations.
Last week, the Office of the Comptroller of the Currency, an arm of the Treasury Department, unveiled a white paper that it said was a first step in helping foster innovation in financial tech, particularly for businesses tied to existing banks.
“Not every innovation is appropriate for a regulated financial institution, and not every innovation that is appropriate for a regulated institution is appropriate for all regulated institutions,” Thomas J. Curry, the comptroller, said in remarks. “But avoiding new approaches completely is equally dangerous.”
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