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by thegreatpeter 252 days ago
– Dodd-Frank Wall Street Reform: Intended to stabilize the system post-crisis, but its complex compliance requirements made it difficult for small and mid-sized banks to offer new products or compete with large incumbents.

- State by state money transmission licensing: Fintechs like PayPal and Stripe had to get 50+ separate state licenses, creating huge compliance costs and delaying product launches.

- FDIC De Novo Bank Rules: caused a collapse in new bank formation for nearly a decade (only a handful of new banks were approved between 2010–2016).

– Over 20 state laws restricted cities from building their own broadband networks, protecting incumbents and stalling fiber deployment.

- Slow spectrum auctions and rigid allocation by FCC delayed rollout of 5G infrastructure compared to countries with faster processes.

- State-based regulation patchwork for insurance: each US state has its own insurance regulator requiring 50+ separate filings for new products, slowing national rollout of innovations

- ACA: while expanding coverage, created heavy administrative burdens for smaller insurers and startups trying to innovate in plan design or digital enrollment

- Conflicting state laws and lack of federal standards created uncertainty for companies like Waymo and Cruise, delaying scaling of self-driving technology.

- Drone FAA rules: heavily limited commercial drone use, slowing the rise of delivery and mapping applications until modernized rules came into effect.

- California's recent, very nuanced "Transparency in Frontier Artificial Intelligence Act" targeting frontier models and "safety" and "risk reporting" like "critical safety incidents"

1 comments

Thanks for listing these, this is really an impressive compilation. I see how naive I was. I assumed everyone agreed that Dodd-Frank was a great bill, and protection of FCC from being carved up by billionaires was also a good thing. Same goes for keeping drones from filling the skies, and putting guardrails on AI billionaires from running wild and breaking big important things. But clearly political alignment determines what is considered innovation. I think almost all but a few of these regulations are spectacular (except for the broadband one) and don't stifle innovation: they protect us from centibillionaires' greedy, vile nature to take more for themselves at our expense while providing a net negative (e.g., Amazon, Facebook, Oracle, megabanks, cryptobros, Private Equity for medical and insurance, etc.). I can see we are on opposite sides of the political spectrum here.