USA Trends and Developments Contributed by: Donald J. Mosher, Kara A. Kuchar, Melissa G.R. Goldstein, Jessica Romano and Adam J. Barazani, Schulte Roth & Zabel LLP
driven fraud prevention, blockchain, and embed - ded finance are enhancing efficiency and secu - rity, but recent failures and heightened scrutiny of bank-fintech partnerships highlight the need for stronger risk management and clearer regu - lations. The digital asset sector is also at a turn - ing point, with federal agencies shifting toward rule-based governance for a more structured approach. However, state-level inconsisten - cies—impacting digital asset businesses and money transmitters—continue to pose chal - lenges. Efforts to modernise money transmit - ter laws could bring more consistent regula - tions nationwide, while new financial institution charters present alternatives to state licensing. Ultimately, fintech firms must strike a balance between innovation and compliance, leveraging regulatory changes as opportunities for growth, partnerships, and smarter business strategies.
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