The consequences of the government shutdown for the poor, the environment, federal employees, and those relying on government services or benefits have become painfully evident, and are getting worse. But the shutdown is also starting to create serious problems for financial technology firms—slowing dealmaking, impairing supervision, and casting a pall over the presumed preeminence of the U.S. as a fintech superpower.
It’s coming as quite a surprise for many Wall Street firms and Silicon Valley investors who have long viewed the federal government as a drag on innovation rather than a facilitator of it.
The federal government’s influence on fintech is proving even more expansive than many have expected, touching on the latest developments in banking, derivatives, securities, online lending and more. The halt of most agency operations are impacting a host of key issues concerning every fintech’s business, from the rate at which money can be raised to how (and even whether) business plans finalized. However, not all pockets of the industry are impacted in the same way.
For more, see my latest article on Roll Call.