The purpose of this executive order is to streamline regulatory processes, reduce unnecessary barriers to entry and encourage collaboration between fintech firms, federally regulated financial institutions and federal financial regulators. The order defines a fintech firm as any nonbank company that uses a developed technological means to offer or support the offering of financial products or services which include any application or any digital or online technology that facilitates access to, management of, or data processing for financial products or services. Financial products or services may include payment processing, lending, deposit-taking, derivatives, investment management, brokerage services, underwriting and capital market activities, custodial and fiduciary services, digital banking, digital asset related services, securities and commodities market activities, and blockchain based services.

Within 90 days of the date of the order, the head of each federal financial regulator is to review existing regulations, guidance, supervisory practices and application processes to identify those that could be updated to facilitate innovation and competition to financial products and services for fintech firms. Those reviews should identify regulations, guidance documents, orders, no action letters and other items that unduly impede fintech firms from entering into partnerships with federally regulated institutions, broker-dealers, investment advisors and futures commission merchants. Additionally, the reviews should identify regulations, guidance documents, orders, no action letters and other items that could be amended to streamline application processes for eligible fintech firms seeking bank charters, credit union charters, deposit or share insurance or other federal licenses, registrations or authorizations. The head of each federal financial regulator is to take steps to encourage innovation as a result of these reviews.

The board of governors of the federal reserve system (FRB) is requested to conduct a comprehensive evaluation of the legal, regulatory and policy framework governing access to the reserve bank payment accounts and payment services by uninsured depository institutions and nonbank financial companies, including those engaged in digital assets and other novel financial activities. Within 120 days of the date of the order, the FRB is requested to submit a report to the president setting forth its findings, options and any recommendations, including (a) the legal authority of the federal reserve to extend direct access to federal reserve payment accounts and payment services to covered firms; (b) options for expanding such access to the extent permitted by law; (c) legal impediments that preclude direct access and a detailed analysis of those impediments and legislative regulatory options that would enable such access; and (d) whether each of the 12 federal reserve banks has legal authority to act independently of the FRB in granting or denying access to Reserve Bank payment accounts and payment services, and, if independent action and decisions by individual federal reserve banks is legally permissible, what FRB-level regulations or policies the FRB has established or proposes to establish to ensure that covered firms are evaluated on a consistent basis.

Additionally, to the extent the FRB determines that existing law permits extension of direct access for covered firms to reserve bank payment accounts and payment services, the FRB is requested to establish transparent application procedures for such access and to make determinations with respect to complete applications within 90 days of the application date for such access.