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“Toddlers play in sandboxes. Adults play by the rules!” Will proposed fintech sandboxes be effective?

The Treasury Department recently released proposals for regulating financial technology that could greatly influence the emerging industry.  The recommendations endorse “regulatory sandboxes,” which would allow companies to experiment with new services that push the boundaries of current law.  New York’s Department of Financial Services Superintendent Maria Vullo has blasted this charter and the regulatory sandboxes.  These proposals seek to eliminate a pay-day lending rule to protect borrowers from illegally high interest rates, as well as eliminate state usury laws in favor of federal law which endorses high rates.  We are happy to provide further advice.  For the remainder of the report, please review the following article.