Guest opinion: Trump is protecting Utah’s fintech innovation
Talk to a longtime Utahn and the most common refrain is how much the state has changed. See Silicon Slopes. Though the name started off as a cheesy marketing slogan, it now is ubiquitous with Utah’s major fintech companies, innovative payment processors and a vibrant startup culture that has made it a leader in financial service technology. However, the Biden administration’s aggressive regulatory stance toward the payments industry over the last four years has stifled some of its growth and jeopardized the state’s position as a fintech leader.
During Biden’s tenure, the Consumer Financial Protection Bureau and other regulatory agencies implemented draconian regulations and mandates that targeted digital payment platforms and cryptocurrencies. These overreaching regulations created compliance nightmares for them, which increased their costs and reduced their incentive to innovate.
Fortunately, President Donald Trump has taken decisive steps to roll back these harmful policies and restore the pro-business environment that was responsible for making the Utah fintech industry what it once was. On Jan. 23, he issued an executive order titled “Strengthening American Leadership in Digital Financial Technology,” which promoted the responsible growth and use of digital assets, blockchain technology and other financial innovations. By championing cryptocurrency and reducing bureaucratic interference, Trump is ensuring that Utah’s fintech sector remains competitive on a global scale.
Trump’s administration has also signaled a commitment to reducing legal and regulatory uncertainty in the crypto and payments industries. On Feb. 21, it was reported that the Securities and Exchange Commission will drop its lawsuit against Coinbase, which was filed under Biden’s administration. The lawsuit created unnecessary barriers for cryptocurrency platforms and deterred companies from establishing a stronger foothold in Utah. By reversing course, the Trump administration is allowing digital asset firms to operate without worry of the government getting in the way.
But there’s still more work to be done. For example, shortly before the election, the Biden Department of Justice (DOJ) filed a baseless antitrust lawsuit against Visa, claiming the company holds a monopoly over the debit card market. In reality, the payments industry is highly competitive, with multiple players such as Mastercard, PayPal and emerging blockchain-based payment networks vying for market share. At best, suits like this come from sincere financial illiteracy; at worst, it’s political demagoguery.
Suits like these create unnecessary uncertainty in Utah, whose financial services sector employs thousands and contributes significant sums to the state’s economy. Many Utah businesses, from small merchants to major fintech firms, rely on Visa’s payment infrastructure to conduct transactions smoothly. The threat of a court-mandated breakup only fuels instability in the payments industry, which could trickle down to consumers and businesses alike. Once Gail Slater is confirmed to run the Antitrust Division of DOJ, she should instruct government lawyers to drop this lawsuit immediately to ensure continued growth and innovation in Utah’s financial sector.
In just one month, Trump’s leadership has already taken significant strides to reverse the Biden-era overregulation that has plagued Utah’s fintech industry. Over the next four years, it should continue to let market forces — not bureaucrats in Washington — determine the future of payments innovation. Utah’s fintech community, its entrepreneurs and the entire state economy stand to benefit from these pro-growth policies — and make no mistake about it: they will ensure the Beehive State remains at the forefront of financial technology for years to come.
Jackson Cho is president of the Federalist Society’s Brigham Young Chapter in Provo.
