Coming Back to Fintech Innovation: Another Executive Order

On May 19, 2026, President Trump issued Executive Order 14405, titled “Integrating Financial Technology Innovation Into Regulatory Frameworks.” The executive order establishes a policy of the United States 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 builds off similar goals of Executive Order 14178, issued at the beginning of the current administration, titled “Strengthening American Leadership in Digital Financial Technology,” which required federal agencies to identify regulations and guidance that should be rescinded or modified that affect digital asset sector, with a view to providing regulatory clarity to that sector.

Executive Order 14405 requires each federal financial regulator, as well as requests the Board of Governors of the Federal Reserve System (FRB), to conduct a review of existing regulations, guidance, supervisory practices, and application processes within 90 days of the date of the executive order (on September 17) to identify those that can be revised to facilitate innovation and competition for fintech firms. As used in the executive order, the term “federal financial regulators” refers to the SEC, CFTC, FDIC, OCC, CFPB, and the NCUA. The order defines the term “fintech firm” to refer to a “non-bank company that uses or develops technological means to offer or support the offering of financial products or services.”

Specifically, the review would focus on identifying barriers for fintech firms from entering into partnerships with federally regulated institutions and streamlining application processes for fintech firms seeking bank or credit union charters, deposit or share insurance, and other federal licenses, registrations, and authorizations. According to the executive order, these institutions include “insured depository institutions, credit unions, broker-dealers, investment advisers, and futures commission merchants.” The order further lays out a 180-day deadline from the date of the order for each federal financial regulator and the FRB to “take steps to encourage innovation as a result of [this] review.”

Separately, the executive order requests the FRB to evaluate access to FRB payment accounts and services by uninsured depository institutions, non-bank financial companies, and direct participants in instant payment networks, including those engaged in digital assets. The evaluation is intended to assess the legal authority of expanding direct access to Federal Reserve payment accounts and services.

What Is the Practical Effect of the EO?

Federal financial regulators have already been proactive at identifying legal impediments that curtail the adoption of non-traditional financial services. For example, the SEC and CFTC jointly issued an interpretive release on how the federal securities laws apply to certain types of crypto assets and transactions. Because federal financial regulators have emphasized facilitating innovation as a stated objective, it is unclear what further effect this executive order will have on their agendas. In addition, some terms in the order may benefit from further clarification, such as whether the term “federally regulated institutions” (or “federally regulated financial institutions”) could include entities other than those listed, e.g., investment companies.

Carlton Fields will continue to monitor developments in this area and offer guidance as to their potential impact on the financial services industry.