SEC's Peirce calls fintech 'sandboxes' overly regulatory

15 May 2018 9:46am
A Republican US Securities and Exchange Commission member expressed skepticism about financial technology “sandboxes,” even as the US lags the rest of the world in overseeing this kind of controlled experimentation.

“My fear that regulators will grab hold of the shovels and buckets is why I am often wary of so-called regulatory sandboxes,” Hester Peirce, one of five SEC commissioners, said in a recent speech.

Peirce’s philosophical aversion to expanding the US’s fintech role suggests a split within the administration and regulatory agencies.

For example, Christopher Giancarlo, a Trump appointee who heads the US Commodity Futures Trading Commission, started LabCFTC last year to help innovators navigate the regulatory process. He also is trying to use fintech to improve CFTC operations.