Representative Olsen Passes Pro-Business Legislation that Creates Regulatory Sandbox for Entrepreneurs

Today in Springfield, State Representative David S. Olsen (R-Downers Grove) passed pro-business legislation to give fintech businesses in Illinois the ability to experiment with innovative financial products and services. Olsen’s legislation creates a regulatory sandbox where both established and startup fintech businesses can offer their products and services to the Illinois market on a limited scale. Current Illinois law does not allow testing of fintech innovations until all regulatory requirements, including fees and licenses, are obtained.

“In the fast-paced world of financial technology, current regulations do not keep up with today’s demands,” said Olsen. “Creating an avenue for previously unregulated activity to be brought into the regulated space is crucial to bringing new innovations to market in Illinois. With my legislation, we give existing and emerging fintech businesses the ability to test their products free from regulatory burdens and fees, while still ensuring consumer protections are in place. Ultimately, this legislation will allow for better interaction and understanding between our state’s regulator and fintech companies.”

According to Olsen, a regulatory sandbox was enacted in Arizona. It has also experienced worldwide success in United Kingdom, Singapore, United Arab Emirates, Malaysia and Australia. Olsen believes his legislation will be extremely helpful in attracting new small businesses, making Illinois more competitive on the national and international stage. The idea for the legislation was brought to his attention by the Illinois Department of Financial and Professional Regulation (IDFPR).

“I thank and congratulate Representative Olsen on achieving this important, bipartisan result,” said Bryan A. Schneider, IDFPR Secretary. “This legislation will help make Illinois an international leader for safe and innovative financial services. My team and I look forward to working with the members of the Illinois Senate in advancing this bill.”

HB 5139 was approved on a 93-4 vote and now moves to the Senate for consideration.

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