FinTech Law and Policy

Duke University via Coursera

Go to Course: https://www.coursera.org/learn/fintechlawandpolicy

Introduction

### Course Review: FinTech Law and Policy on Coursera In today's rapidly evolving financial landscape, understanding the intersection between technology and law is crucial, especially for aspiring entrepreneurs and professionals in the FinTech sector. The course on **FinTech Law and Policy**, available on Coursera, offers invaluable insights into the complex legal and regulatory framework governing financial technologies. #### Course Overview The **FinTech Law and Policy** course provides a comprehensive introduction to the important legal, regulatory, and policy issues associated with various aspects of FinTech, including cryptocurrencies, initial coin offerings (ICOs), online lending, and innovative payment solutions. The course targets not only those who want to launch their own FinTech ventures but also professionals working within financial institutions who need to navigate the regulatory environment. #### Detailed Syllabus Breakdown 1. **Welcome to FinTech Law and Policy**: This initial module lays the groundwork for understanding the evolving landscape of FinTech regulations, with a focus on the emergent challenges that new technologies pose to traditional financial institutions and regulators. The highlight is the proposal from the Office of the Comptroller of the Currency for FinTech firms to operate as banks, a significant shift in the regulatory paradigm. 2. **The Evolving Relationship Between FinTechs, Regulators, and Traditional Financial Institutions**: This section addresses key regulatory challenges that FinTech firms face, reflects on the shift from disruption to strategic partnerships in the industry post-2008, and explores the innovative regulatory approaches like the "sandbox" model. The examples presented here are not only enlightening but also pertinent to current industry developments. 3. **Cryptocurrency and Initial Coin Offerings**: Here, the course delves into the regulatory landscape surrounding cryptocurrencies and the legal treatment of ICOs. The exploration of how cryptocurrencies are defined as money, commodities, and property provides a solid foundation for understanding their multifaceted regulatory status. 4. **FinTech Lending**: This module introduces various FinTech lending models and discusses the regulatory approaches to ensure compliance. The collaborations between FinTech lenders and traditional banks to circumvent state-by-state restrictions are particularly relevant given the current state of the lending market. 5. **Banking Regulation in the U.S.**: Focusing on the process of becoming a bank in the U.S., this module is an essential resource for FinTech startups interested in establishing regulatory compliance. Insight into the Office of the Comptroller of the Currency’s proposals connects theoretical knowledge with practical application. 6. **FinTech Payments, Wealth Management, and Account Aggregation**: The course concludes with an in-depth look at the legal frameworks governing legacy payment systems and the innovations FinTech firms are introducing. By examining technologies like robo-advisors and account aggregation services, this module summarizes how FinTech is reshaping consumer finance. #### Key Takeaways - **Importance of Regulatory Knowledge**: The course emphasizes that a deep understanding of legal regulations is as critical as technological innovation in the FinTech space. - **Real-World Examples**: Each module is supplemented by current case studies and insights into what occurs when regulations are not adhered to, making the content highly relevant to today’s market conditions. - **Strategic Approaches**: The course does not just focus on the constraints imposed by regulations but also highlights innovative regulatory frameworks like sandboxes, encouraging students to think creatively about compliance. #### Recommendations The **FinTech Law and Policy** course is highly recommended for: - Aspiring FinTech entrepreneurs who need to grasp the regulatory landscape to launch compliant and sustainable businesses. - Professionals within financial institutions seeking to adapt to the digital transformation of the industry. - Students of finance or law who want to specialize in the burgeoning intersection of these fields. By the end of the course, participants will not only have a robust understanding of key regulatory issues but also possess the practical insights necessary to navigate the fast-paced world of FinTech. Whether you're looking to build a compliance-oriented FinTech firm or simply wish to enhance your financial acumen, this course is an invaluable investment in your future in finance.

Syllabus

Welcome to FinTech Law and Policy

In this course, you will learn about the critical legal, regulatory, and policy issues associated with cryptocurrencies, initial coin offerings, online lending, new payments and wealth management technologies, and financial account aggregators. In addition, you will learn how regulatory agencies in the U.S. are continually adjusting to the emergence of new financial technologies and how one specific agency, the Office of the Comptroller of the Currency, has proposed a path for FinTech firms to become regulated banks.

The Evolving Relationship Between FinTechs, Regulators, and Traditional Financial Institutions

This module begins with a preview of the key regulatory challenges facing FinTech firms and provides several examples of what can happen when FinTech firms fail to comply with applicable laws and regulations. We then look at how the FinTech industry has evolved post-2008 - from a disrupt mentality to one of “strategic partnership” - along with corresponding FinTech industry investment trends. Next, we examine the challenges regulators face in responding to new FinTech developments and detail how several U.S. regulatory agencies have adjusted thus far. We conclude this module by exploring one specific regulatory approach, known as a “sandbox,” that has been deployed in other countries and in one U.S. state.

Cryptocurrency and Initial Coin Offerings

This module first provides an overview of cryptocurrencies and distributed ledger technology, and then examines how cryptocurrency is regulated by various state and federal agencies. You will also learn how cryptocurrency is regulated as: money, a commodity, and property. The module concludes with an examination of initial coin offerings and their regulatory treatment.

FinTech Lending

This module will introduce you to the various types of FinTech lending models and the regulatory treatment of these lenders. You will learn how many FinTech lenders are partnering with regulated banks to get around the state-by-state restrictions that apply to non-bank lenders.

Banking Regulation in the U.S.

Many FinTech firms are interested in becoming regulated banks. This module will teach you about the process of becoming a bank and the government agencies responsible for regulating banks in the U.S. We will look at the Office of the Comptroller of the Currency’s proposal to grant a new type of bank charter specifically for FinTech firms and the options currently available to FinTech firms that would like to become a bank.

FinTech Payments, Wealth Management, and Account Aggregation

The final module begins with an overview of the legal framework applicable to legacy payment systems in the U.S., followed by a review of how some FinTech firms are building on top of these systems to provide faster, more convenient, consumer payments while other FinTech firms are bypassing these systems all together by utilizing distributed ledger technology. From there we examine new technologies being deployed in the wealth management industry, including the use by some firms of “robo-advisors” to allocate investors’ portfolios using algorithms based on the investors’ data and risk preferences. You will see that robo-advisors are subject to the same oversight as traditional investment advisers. The module concludes by exploring the legal issues surrounding FinTech companies that allow consumers to aggregate the information from their various financial accounts.

Overview

Being a successful FinTech firm requires more than just great technology; it also requires an understanding of the laws and regulations applicable to your business. This course will provide you with that understanding. You will learn about the critical legal, regulatory, and policy issues associated with cryptocurrencies, initial coin offerings, online lending, new payments and wealth management technologies, and financial account aggregators. In addition, you will learn how regulatory agencies

Skills

Reviews

Impressive! Manage to completed in 3 days, committed and dedicated studying in Fintech.\n\nIf I can, why shouldn't you?\n\np.s: The final exam was quite tough! Get prepare students with your notes!

Great insight and perfect curriculum to understand Fintech Law and Policy. Special thanks to Mr. Lee Reiners for making such complex subject easier to understand.

I highly recommend this course especially if your are currently working in the financial services industry. I am always eager to learn and this course taught me many new topics that i was unaware of.

Amazing, very well explained course that gives you basic but precise informations about the FinTech world in the United States. Recommended!

Loved this course, took me a few days of focused work. Great overview of the complex environment Fintechs operate in and around. Really like the visual aids, too!