New York’s Letitia James led 22 other Democratic state attorneys general in a letter to the Consumer Financial Protection Bureau that slammed the agency for its plans to allow banks and technology firms to develop untested fintech products and services without fear of reprisals from regulators. (Gary Gershoff/Getty Images for Housing Works, Inc., file photo )
State attorneys general, consumer advocates, community activists, and banking regulators are criticizing proposed legal protections for banks and technology firms that develop “innovative” financial products.
The protections would come from the Consumer Financial Protection Bureau, which in December unveiled what it calls a “regulatory sandbox” that will allow firms to develop untested fintech products and services without fear of reprisals from regulators. While the criticism rolls in, financial industry groups are rallying behind the plan, even asking the CFPB to expand the legal safe havens.