New executive order opens the door for fintechs
- Regulatory modernization and simplification: The EO aims to update brick-and-mortar-era rules and reduce fragmented oversight across agencies, making it easier for fintechs to scale and compete with traditional institutions.
- Potential direct access to federal payment systems: Non-bank fintechs could gain direct access to Federal Reserve payment infrastructure, reducing reliance on intermediary banks and improving speed and efficiency.
- Expanded growth and partnership opportunities: Streamlined licensing, clearer regulatory pathways, and encouraged collaboration with banks could accelerate innovation, product development, and market entry for fintech firms.
- Additional guidance is forthcoming: Policies and guidelines are required to be updated in the next 90-180 days.
On May 19, 2026, President Trump issued the Integrating financial technology innovation into regulatory frameworks executive order, signaling a shift in how fintech is governed in the U.S. The order calls for updating regulations to enable better integration of digital assets and new financial technologies into traditional banking and payment systems.
For fintechs, this EO has the potential to significantly alter the regulatory landscape they are operating in by:
- Modernizing regulations: Updating rules written for a brick-and-mortar world to accurately reflect digital-first services.
- Reducing fragmented friction: Addressing the patchwork of overlapping agency requirements that could slow down growth and inadvertently favor heavily capitalized traditional incumbents.
- Encouraging collaboration: Creating structured, predictable pathways for product partnerships between fintech firms, traditional banks, and regulatory bodies.
- Securing global leadership: Ensuring the United States remains the primary hub for global financial innovation by establishing a highly competitive regulatory posture.
What does the EO mean for fintech payment system access?
A central focus of the order is fintech firms’ access to Federal Reserve payment accounts and systems. The Federal Reserve has been directed to evaluate whether non-bank fintech companies should be allowed direct access.
As part of this review, the Fed will assess:
- The Federal Reserve’s authority to grant access to payment accounts and payment services.
- Legal and regulatory constraints that limit access.
- The Fed’s authority to expand eligibility.
- If the 12 Federal Reserve Banks can act independently when denying or granting access.
The Fed must deliver its findings within 120 days, along with recommendations for potential reform.
If implemented, this could allow eligible non-bank fintechs to participate directly in core payment infrastructure, significantly reducing or eliminating their reliance on intermediary sponsor banks for clearing and settlement. It will be important for fintech firms to understand the increased risk and exposure that taking on direct access to these systems entails.
Streamlining fintech regulations
Trump is ordering the heads of federal financial regulators — including the SEC, OCC, FDIC, CFPB, CFTC and NCUA — to conduct a comprehensive review of their oversight frameworks within 90 days. The reviews are to identify regulations, orders, no-action letters, and other items that impede fintech firms from partnering with federally regulated institutions. The leaders of these federal organizations must also identify regulations that hinder the application processes for fintech firms seeking bank charters, credit union charters, deposit or share insurance, and other Federal licenses, registrations and authorizations.
The executive order emphasizes balancing innovation interests with safety, consumer and investor protection, market integrity, financial stability and oversight.
Within 180 days, the heads must work with the White House to implement the changes identified in the review.
A broader definition of fintech
The executive order defines fintech as a non-bank company that uses technology to offer or support financial products or services. Notable products or services contained in this definition include:
- Payment processing
- Lending
- Deposit-taking
- Digital banking
- Digital asset-related services
- Securities and commodities market activities
- Blockchain-based services
What is the market impact?
When changes spurred by the EO begin to take effect, the impacts we could see in the market include:
- Greater competition: Lower barriers may enable more fintech to challenge traditional institutions.
- Faster innovation cycles: Streamlined processes could accelerate product development and deployment.
- Improved financial access: Consumers and businesses may benefit from faster payments and broader service options.
While the executive order will likely create a friendlier regulatory environment for fintech businesses, it could also introduce new complexities. Fintech firms that expand into more heavily regulated areas will face greater compliance burdens and need to understand risk as traditional financial institutions do.
Why this matters
For fintech organizations, this executive order represents both opportunity and responsibility. It doesn’t necessarily mean the regulatory landscape is becoming simpler — it is being reshaped.
- Regulatory change will require adaptation: Firms should anticipate the need to revisit licensing strategies, update risk and governance frameworks, and stay closely aligned with regulatory developments as agencies implement reforms.
- Growth opportunities are expanding: Easier access to partnerships, licenses, and potentially payment infrastructure could unlock faster scaling and broader market participation.
- Payment infrastructure could be transformative: Direct access to Federal Reserve systems — if realized — would significantly reduce dependencies on traditional banking intermediaries while improving speed and efficiency.
- Scrutiny will remain high: Core areas such as Anti-Money Laundering (AML), Know Your Customer (KYC), cybersecurity and consumer protection will continue to demand strong controls, especially as innovation accelerates.
- State vs. federal dynamics: As federal frameworks adapt, navigating the interplay between updated federal paths and existing state-level regulations will require strategic legal maneuvering.
How Wipfli can help
At Wipfli, we have our thumb on the pulse of fintech regulation. Let us help you navigate risk and regulatory compliance while you focus on growth. We have been focused on helping fintech firms and financial institutions for decades. Our consultants have experience serving banks, credit unions and regulatory bodies. Risk is always present, but how you navigate the changing landscape can help ensure your fintech creates a lasting and positive impact for consumers. Start a conversation.
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