The policy, regulatory, and supervisory decisions made by the Federal Reserve and other financial regulators can impact the ways in which new financial technologies are developed 3/6  BIS central bankers' speeches  and implemented, and ultimately how effective they are. It is critical that fintech firms and financial institutions comply with all applicable legal protections and obligations.
At the same time, it is important that regulators and supervisors not impose undue burdens on financial innovations that would provide broad social benefits responsibly. An unduly rigid regulatory or supervisory posture could lead to unintended consequences, such as the movement of innovations outside of the regulated banking industry, potentially creating greater risks and less transparency.