Justine Clark authored the USA chapter in Global Legal Insights - Fintech 2026.

In the near term, one of the most significant developments for financial technology companies (“Fintechs”) will be improved access to the use of certain Federal Reserve payment systems. In addition, although it is still in the early stages of development, the potential implementation of a cybersecurity portal through which payments may be scrutinized to avoid significant cybersecurity issues will facilitate the ability of Fintechs to comply with current and evolving security and anti‑fraud regulations. These developments will have a significant impact on the use of imbedded finance applications. The most material development on the horizon, which will impact the operation of payments and clearing systems across the board, will involve the digitization of all aspects of the financial system, including not only payments but other financial assets. The ultimate implementation of a fully digitized system will likely take a few years and require major changes to current federal regulations. The digitization of payment and clearing systems will also require the re‑engineering of imbedded regulatory compliance applications, particularly in terms of how such regulatory compliance applications would be integrated into typical distributed ledger technology. The developments described above will have a significant impact on payment processors, ultimately requiring full digitization of all data, and direct access to certain Federal Reserve payment systems. The ultimate impact on consumer‑based fintech products will depend upon the market’s ability to incorporate consumer protection software into user‑friendly digital platforms.

This chapter discusses:

• Fintech offerings in current practice in the United States
• Regulatory (“Regtech”) and insurance technology (“Insurance tech”)
• Regulatory bodies
• Functional challenges and regulatory restrictions
• Cross-border business

The chapter was first published in GLI - Fintech 2026.