Dealing With Disruption: Emerging Approaches to FinTech Regulation

30 Pages Posted: 15 Apr 2020


This article examines the emerging regulatory responses to an ongoing fintech disruption of traditional finance. Focusing primarily on the U.S. experience to date, it offers a three-part taxonomy of principal approaches to fintech taken by financial regulators: what I call the “experimentation” approach, the “incorporation” approach, and the “accommodation” approach. Within this framework, the article analyzes the pros and cons of establishing regulatory sandboxes and innovation hubs, issuing special fintech charters, and pursuing various regulatory-adjustment measures under a broad heading of RegTech.

Keywords: fintech, blockchain, DLT, cryptoassets, RegTech, SupTech, financial regulation, fintech charter, regulatory sandbox, CBDC, AI, machine learning, smart regulation, financial innovation, systemic risk, financial stability, technocratic regulation, regulatory reform, Libra

Suggested Citation

Omarova, Saule T., Dealing With Disruption: Emerging Approaches to FinTech Regulation. 61 WASH. U. J. L. & POL’Y 25 (2020)., Cornell Legal Studies Research Paper No. 20-17, Available at SSRN:

Saule T. Omarova (Contact Author)

Cornell University - Law School ( email )

Myron Taylor Hall
Cornell University
Ithaca, NY 14853-4901
United States

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