The Commodity Futures Trading Commission is asking the fintech industry for feedback as it looks for ways to modernize rules that may be slowing innovation in financial services.
The CFTC has issued a Request for Information to identify regulations, guidance documents, orders, no-action letters, and other regulatory items that may create barriers for fintech firms seeking to partner with federally regulated institutions. The agency is also reviewing whether certain processes could be updated to make applications easier for eligible fintech companies.
The move is part of a broader federal push to encourage financial technology innovation while maintaining oversight, market integrity, safety and soundness, and consumer protection.
CFTC Looks to Remove Barriers for Fintech Firms
The CFTC said the Request for Information is intended to help the agency determine which regulatory items may be unnecessarily limiting fintech participation in regulated financial markets.
Fintech companies increasingly provide services across payments, lending, digital assets, brokerage, derivatives, investment management, and other areas of financial technology. However, some firms face complex regulatory pathways when trying to work with banks, credit unions, broker-dealers, futures commission merchants, and other regulated institutions.
By gathering industry feedback, the CFTC aims to better understand where existing requirements may be outdated, overly burdensome, or unclear.
Executive Order Drives Regulatory Review
The CFTC’s action follows Executive Order 14405, titled “Integrating Financial Technology Innovation into Regulatory Frameworks.” The order directs federal financial regulators to review existing rules, guidance, supervisory practices, and application processes that could be updated to support fintech innovation and competition.
The executive order specifically calls for regulators to look at barriers that may prevent fintech firms from partnering with federally regulated institutions. It also asks agencies to consider ways to streamline licensing, registration, and authorization processes for qualified fintech companies.
For fintech startups and emerging financial technology companies, the review could create opportunities for clearer compliance pathways and faster collaboration with traditional financial institutions.
Public Comments Open After Federal Register Publication
The CFTC said the public comment period will remain open for 21 days after the Request for Information is published in the Federal Register.
Comments can be submitted electronically through Regulations.gov, along with other submission methods outlined in the official request. All submitted comments will be posted publicly.
The agency is seeking feedback from fintech companies, financial institutions, market participants, industry groups, consumer advocates, and other stakeholders.
Why This Matters for Fintech
The CFTC’s request could have a major impact on how fintech companies engage with regulated markets.
If the agency identifies rules that can be updated or clarified, fintech firms may gain more efficient routes to partnerships, approvals, and compliance. This could be especially important for companies working in digital assets, derivatives, prediction markets, payments, and other financial technology sectors that intersect with CFTC oversight.
At the same time, regulators are expected to balance innovation with risk management. Any future changes would likely need to preserve investor protection, market stability, and regulatory transparency.
CFTC Also Reviewing Prediction Market Rules
The CFTC has also recently sought public comment on whether it should amend or issue new rules for event contracts traded on prediction markets.
That separate review focuses on how CFTC regulations should apply to prediction markets, which types of event contracts may be prohibited, and how costs and benefits should be evaluated.
Together, the fintech Request for Information and the prediction market review show that the CFTC is taking a broader look at how its regulatory framework applies to emerging financial technologies.
The Bottom Line
The CFTC’s request for industry input marks another step in the federal government’s effort to update financial regulation for the fintech era.
For fintech firms, the process offers a chance to highlight regulatory challenges that may be limiting innovation, partnerships, and market entry. For financial institutions, it could help create clearer rules for working with technology-driven financial service providers.
The outcome will depend on the feedback the CFTC receives and how the agency chooses to act after reviewing public comments.