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Analysis & opinionFebruary 9 2022

Are regulations the roots of innovation?

For most of my time working with banks, regulators were about clipping banks’ wings to suit the market. Today they are all about opening markets and enabling innovation.
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Are regulations the roots of innovation?

Jason Butcher, an entrepreneur and a friend, recently posted a picture of a tree on LinkedIn and likened it to today’s financial technology world. The diagram depicted the roots of the tree as innovation through enabling regulatory policies. The core of innovation is in the tree trunk’s technologies, whereas the product of innovation — the leaves on the tree — is derived from enabling policies and technologies.

However, it doesn’t work that way.

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