Fintech Market Overview

This article does not constitute legal advice.

Fintech in the USA


The USA is well known for its complicated model of financial regulation.1

All types of financial transactions are controlled at the state and federal levels, making up the so-called two-tiered system of regulation.1

Currently, the federal government plays the role of the key regulator of the US fintech sector through five players. Also, there is financial regulation at the state level. In some cases, the relevant laws demonstrate some inconsistency as they are either the same or go against one another.1

The United States differs from the EU in terms of the functioning of the license regulation system. For example, it's not allowed to acquire a license in one state in order to use it in another state.1

Fintech organizations that act as payment service providers:

  • are obliged to acquire official money transfer licenses from FinCEN (U.S. Department of the Treasury Financial Crime Enforcement Network)
  • are required to ensure full compliance with state money transfer licensing regulations 1

The Consumer Financial Protection Bureau (CFPB) serves as the single federal institution that ensures supervision and regulation of any non-bank fintech organization. This establishment is responsible for controlling business entities and implementing relevant enforcement measures against false advertising campaigns, offensive activities, and misdirection in the field of financial technology.1

These federal regulatory agencies developed their own business regulations:

  1. Federal Reserve System
  2. Office of the Comptroller of the Currency (OCC)
  3. Federal Deposit Insurance Corporation (FDIC)
  4. National Administration of Credit Unions 1

To pass registration of a financial organization, it's necessary to undergo a complex procedure consisting of numerous operations like criminal background checks, verification of financial position, and fingerprinting analysis for business owners, key shareholders, and board members like directors and executives.1

Crowdfunding in the USA

Fintech in other countries

Let's introduce you

US Fintech Lawyers

Roman Buzko

Roman Buzko

Registration, regulatory advice, investment transactions and dispute resolution.

Viacheslav Losev

Viacheslav Losev

Legal support for FinTech and Blockchain projects

Silvia Calls

Silvia Calls

We work for international SMEs, startups and Telco's

Fintech investors from the USA

2048 Ventures

2048 Ventures

We are a team of experienced operators and dreamers who are passionate about working with founders at the earliest stage

First Check Ventures

First Check Ventures

Our syndicate is focused on investing in early stage startups across the globe

  1. https://thelawreviews.co.uk/title/the-financial-technology-law-review/usa
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