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Podcast: Cato Event Podcast
Episode: Promoting Fintech Innovation and Consumer Choice: The Role of Regulatory Sandboxes
Description: In today’s highly regulated financial system, launching new products and financial services businesses can be extremely challenging. To facilitate innovation and entry, some jurisdictions have created regulatory sandboxes — supervised halfway houses in which firms can test new products without being subject to the full burden of compliance with existing rules.The Consumer Financial Protection Bureau (CFPB) recently announced such a program for U.S. consumer finance firms. The sandbox promises to increase innovation and lower costs for financial services used particularly by lower-income Americans. Yet there are concerns, on one hand, that sandboxes reduce consumer protection and, on the othe...