WASHINGTON – The Treasury Department will release a white paper next week outlining “research and recommendations” related to marketplace lending as a capstone to its nearly yearlong inquiry into the fast-growing industry.
The Treasury issued a request for information last July soliciting comments, data and recommendations for how or to what extent regulators should set more stringent standards on peer-to-peer lending, also known as marketplace lending. The RFI laid out 14 specific questions, including the impact of marketplace lending on market segmentation, implications for anti-money-laundering and fraud, and the considerations for traditionally underserved demographics.
A Treasury spokesman said that the white paper is the culmination of that inquiry and that it would be released early next week.
“After considering the public comments we received and additional input, we engaged with stakeholders and regulators to explore these themes further and develop recommendations for the safe growth of this industry,” the spokesman said. “We look forward to sharing our research and recommendations with the industry and the public and remaining engaged on innovation in consumer and small-business lending.”
Marketplace lending has increasingly drawn the attention of financial regulators. The Office of the Comptroller of the Currency recently issued a white paper of its own on fintech, while the Consumer Financial Protection Bureau and several state regulators are launching inquiries into potential abuses and concerns. Some studies suggest that the industry has grown by over 700% in four years, making it one of the hottest sources of growth in finance.