Global FinTech Guide
Country Name
United States
RegTech and compliance management
RegTech is composed of the words “regulatory” and “technology”. It is a collective term for the application of modern technologies, to get the increasing regulation in the banking- and financial sector under control both from an IT and a legal standpoint.


Attitude of the country towards RegTech-services

Banks, broker-dealers, investment advisers and other financial institutions extensively utilise third-party technology solutions to help with compliance solutions. While these service providers themselves are not regulated, the regulated entities are still liable for failure to comply and thus generally provide oversight (or require service providers to implement their own compliance policies and procedures) to ensure compliance. Regulators attitude towards RegTech is often neutral or even negative since it makes it more difficult for the regulators to ensure compliance on examinations and inspections. 

Legal affairs  

Obligations and requirements to provide RegTech-services

There are no specific regulatory requirements pertaining to RegTech services generally, although certain regulatory requirements must be met depending on the type of regulatory compliance being monitored or assisted with by the specific product. 

Additional comments regarding the legal situation for RegTech-services or what RegTech’s must be aware of in this business area

Liability of RegTechs may vary from state to state, and while these services typically are not regulated directly, certain activities in certain states may require licenses. 

Economic conditions

Market size for RegTech-services and biggest companies in this business area

This market is still nascent and no reliable market data is available. Further, many RegTech companies are only active with one type of regulatory compliance, whether it be broker-dealer, identity verification, banking, state securities law or other, and thus there is not a good way to compare RegTechs. 

Additional comments regarding the economic situation for RegTech-services or what RegTech’s must be aware of in this business area

While the market is expanding, it is unlikely to grow significantly until there is an assurance that the regulated entities themselves won’t be subjected to heightened scrutiny because they are relying on RegTechs. The most activity in RegTech seems to be in know-your-customer, anti-terrorism, and accredited investor verification services, along with automated fund administration services, particularly for digital asset fund managers, and accounting compliance. 



© 2022, Polsinelli PC. All rights reserved by Polsinelli PC as author and the owner of the copyright in this chapter. Polsinelli PC has granted to Multilaw non-exclusive worldwide license to use and include this chapter in this guide and to sublicense Lexis Nexis, a division of RELX Inc. and its affiliates certain rights to use and distribute this guide.

The information in this guide provides a general overview at the time of publication and is not intended to be a comprehensive review of all legal developments nor should it be taken as opinion or legal advice on the matters covered. It is for general information purposes only and readers should take legal advice from a Multilaw member firm.


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