fintech

Fintech sector hurt by shutdown
Federal government’s influence more expansive than expected

The government shutdown is starting to create serious problems for financial technology firms and has put some policy development on hold. (Ethan Miller/Getty Images file photo)

ANALYSIS — The consequences of the partial government shutdown for the poor, the environment, federal employees and those relying on government services or benefits have become painfully evident, and are getting worse. The shutdown is also starting to create serious problems for financial technology firms — slowing dealmaking, impairing supervision and casting a pall over the presumed pre-eminence of the U.S. as a fintech superpower.

It’s coming as quite a surprise for many Silicon Valley investors and Wall Street firms that have long viewed the federal government as a drag on innovation rather than a facilitator of it.