(THE CENTER SQUARE) – After more than a year in the Ohio General Assembly, legislation that reduces business regulations in the financial technology industry only needs a signature from Gov. Mike DeWine to become law.
Senate Bill 249, which had passed the Senate in March and unanimously passed the House on Wednesday, would create what proponents call a regulatory sandbox allowing real-time testing of new technologies, reducing red tape for businesses.
“The idea is that a significant amount of the innovation in the financial technology space is happening on the coasts and then moving our way,” Don Boyd, vice president, state government relations and general counsel for the Ohio Bankers Association, testified in committee about the bill. “Anything the state can do to help spur some of that innovation to happen here, and preferably either coming from or partnering with Ohio banks, should be pursued.”
There was no opposition testimony in either the House or Senate.
Logan Kolas, economic policy analyst at The Buckeye Institute, published a policy paper, Build a Regulatory Sandbox for Financial Technology Innovators, in March 2021. The paper said the state could create a better environment for existing financial tech businesses to develop products and create jobs, while also providing incentives for other firms to move into the state.
“Under the leadership of Sen. Steve Wilson, R-Maineville, the Ohio General Assembly has taken the first step to cut regulatory red tape that often keeps innovative technology from reaching users,” Kolas said. “By sending this Buckeye Institute-championed policy to Gov. DeWine’s desk, lawmakers have shown their enthusiasm to make Ohio’s regulatory process less daunting, less expensive, and more transparent for financial technology employers looking to establish a presence or expand their operations in Ohio.”
Kolas pushed lawmakers to expand the sandbox concept to other industries.
“While today’s vote should be celebrated, Ohio lawmakers should not stop here. The benefits of regulatory sandboxes should be extended to all industries while lawmakers continue to undertake other policy and regulatory reforms to make Ohio a leader in emerging technology,” he said.
As previously reported by The Center Square, Wilson introduced the bill in October 2021 as another step for lawmakers to reduce red tape in what analysts have called one of the most highly regulated states in the country.
