Posted November 05, 2021
The rapid development of new technology impacts every industry, but regulators are paying significant attention to the current disruption of the financial services and FinTech industry. This is particularly true in the crypto assets market, which SEC Chairman Gary Gensler recently characterized as being “like the Wild West” with many participants “sitting astride of – not operating within – regulatory frameworks that protect investors and consumers, guard against illicit activity, and ensure for financial stability.”
Part of the challenge of providing appropriate regulatory frameworks is that traditional regulation and rule-making processes have struggled to keep up with the pace of new technology. Still, regulators are beginning to evolve and collaborate with industry experts to implement flexible regulatory programs to balance consumer protection and foster innovation. North Carolina became another important data point in this global trend on October 15, 2021, when North Carolina Governor Roy Cooper signed the North Carolina Regulatory Sandbox Act of 2021 (“NC Sandbox Act”) into law. With the implementation of the NC Sandbox Act, North Carolina is the 10th state to launch a “regulatory sandbox” for innovative FinTech or InsurTech offerings.