The Government Accountability Office ("GAO") issued a report on four types of financial technology ("FinTech"): marketplace lending, mobile payments, digital wealth management (also known as "roboadvisor"), and distributed ledger technologies ("DLTs") such as blockchain. The GAO addressed functionality, risks and benefits, industry trends, and regulatory oversight.

The GAO did not make specific recommendations concerning oversight, noting that very little commonality exists between the differing types of FinTech. However, the GAO acknowledged the challenges involved in regulating FinTech:

"With respect to virtual currencies, federal and state regulators have taken varied approaches to regulation and oversight. The existing regulatory complexity for virtual currencies indicates that regulatory approaches for future applications for DLT will also be complex."

Commentary / Steven Lofchie

The GAO report serves as a good introduction to each of the four FinTech subsectors, and to some of the more significant legal and compliance issues that each business raises.

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