Executive Order 14405: Integrating Financial Technology Innovation Into Regulatory Frameworks
This Executive Order, issued on May 19, 2026, outlines the United States' policy to foster financial innovation by integrating financial technology (fintech) into existing regulatory frameworks. It directs Federal financial regulators to review and update regulations, guidance, and practices to support innovation, reduce barriers to entry for fintech firms, and encourage collaboration within the financial ecosystem.
Policy and Objectives
- The United States aims to maintain its global leadership in financial innovation by supporting the growth of fintech firms, which enhance access to financial products and services and create economic opportunity.
- The Federal Government must update regulations to facilitate the integration of digital assets and innovative technology into traditional financial services and payment systems.
- A key objective is to remove overly burdensome and fragmented regulations and supervisory practices that act as barriers to entry, particularly for small and emerging fintech firms.
- The overarching policy is to streamline regulatory processes, reduce unnecessary barriers, and promote collaboration among fintech firms, federally regulated financial institutions, and Federal financial regulators.
Key Definitions
- Fintech firm: Defined as a non-bank company that uses or develops technology to offer or support financial products or services. This includes, but is not limited to, payment processing, lending, digital banking, digital asset-related services, and blockchain-based services, encompassing activities listed in 12 U.S.C. 1843(k)(4).
- Federal financial regulators: Specifically refers to the Consumer Financial Protection Bureau (CFPB), the Securities and Exchange Commission (SEC), the National Credit Union Administration (NCUA), the Commodity Futures Trading Commission (CFTC), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Streamlining Regulatory Processes (Compliance Requirements)
- Initial Review (Due August 17, 2026): Within 90 days of May 19, 2026, the head of each Federal financial regulator must conduct a comprehensive review of existing regulations, guidance, supervisory practices, and application processes. The purpose is to identify items that could be updated to facilitate innovation and competition for fintech firms, especially small and emerging ones.
- The review must specifically identify regulations, guidance, orders, and no-action letters that unduly impede fintech firms from partnering with federally regulated institutions (e.g., insured depository institutions, credit unions, broker-dealers, investment advisers).
- It must also identify items that could be amended to streamline application processes for eligible fintech firms seeking Federal licenses, charters, or insurance, while balancing innovation with safety and soundness, consumer/investor protection, market integrity, and financial stability.
- Action on Review Findings (Due November 15, 2026): Within 180 days of May 19, 2026, the head of each Federal financial regulator, in consultation with the Assistant to the President for Economic Policy, must take steps to encourage innovation based on the findings of their 90-day review.
Access to Federal Reserve Services
- The Board of Governors of the Federal Reserve System (FRB) is requested to participate in the streamlining actions outlined in Section 3.
- Comprehensive Evaluation and Report (Due September 16, 2026): The FRB is requested to conduct a comprehensive evaluation of the legal, regulatory, and policy framework governing access to Reserve Bank payment accounts and services for "covered firms" (uninsured depository institutions and non-bank financial companies, including those involved in digital assets and novel financial activities).
- Within 120 days of May 19, 2026, the FRB is requested to submit a report to the President, through the Assistant to the President for Economic Policy, detailing its findings, options, and recommendations.
- The evaluation should assess the FRB's legal authority to extend direct access, options for expanding access with appropriate risk management, legal impediments and potential legislative/regulatory solutions, and the authority of individual Federal Reserve Banks to act independently, along with FRB policies for consistent evaluation.
- Transparent Application Procedures (Conditional): If the FRB determines that existing law permits direct access for covered firms to Reserve Bank payment accounts and services, it is requested to establish transparent application procedures and make determinations on complete applications within 90 days of receipt.
General Provisions
- The Executive Order does not diminish the authority of any executive department or agency or the functions of the Office of Management and Budget.
- Implementation is contingent upon applicable law and the availability of appropriations.
- This order does not create any enforceable rights or benefits against the United States.