U.S. Initiates Regulatory Sandbox for Blockchain and Cryptocurrency

Fintech - the intersection of finance and technology, includes cryptocurrencies and blockchain technology, and the CFPB's actions are intended to expand in these sectors.

The CFPB's initiative strives to create an open dialogue between developers and government officials charged with compiling regulatory assignments while mitigating unintended negative consequences.

"You can make a strong argumentthat new technology actually offers new and innovative ways to protect consumers."

The office of innovation isn't only about protections and has a growth mandate as Mr. Mulvaney looks to foster new ideas in the tech sector.

Initially, the office will focus on crypto assets and blockchain technology.

In many ways, the CFPB's attempts to introduce a streamlined regulatory approach to fintech development aligns with the sentiment from Congressional hearings earlier this week that were focused on devising intentional and timely regulation for cryptocurrencies.

Two Congressional hearings, by the House Finance Services Committee and the House Committee on Agriculture, cautioned against overly hasty regulation for cryptocurrencies and blockchain technology, but they stopped short of issuing the type of implicit endorsement that Mr. Mulvaney's announcement included.

Neither institution is wholly endorsing or rejecting a technology that they, admittedly, know very little about.

All these events in Washington make it clear that the U.S. government is interested in supporting blockchain technology and cryptocurrencies in a responsible, business-friendly way while protecting consumers.

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