The CFTC recently announced a landmark partnership with the Financial Conduct Authority, one of the U.K.’s main financial regulators. The two agencies signed a cooperative arrangement that "commits the regulators to collaborating and supporting innovative firms through each other’s financial technology initiatives—LabCFTC and FCA Innovate."
RK&O partner Vincent Basulto discussed this partnership with The National Law Journal and acknowledged that the FCA has been at the forefront of fostering fintech growth. "Initiatives such as this demonstrate the CFTC’s continuing commitment to the fintech space and highlight the need for multinational efforts to allow innovative companies to evolve more readily outside of their home markets," he said.
Basulto believes that if the CFTC and FCA’s agreement is successful, fintech regulators in other countries could engage in similar cooperative agreements. But he thinks it’s unlikely other U.S. regulators besides the CFTC will ink any similar agreements in "the near-term."