Financial Startups Lobby for Congress to Ease Regulation on P2P Lending

Financial startups have formed the ‘Coalition for new Credit Models’. Among the founding enterprises are Prosper and Loanio. Two of the changes the coalition asks Congress and the Administration to make are:

Adopt legislation classifying person-to-person lending as a consumer banking service, not a securities offering.

Create a Start Up Liaison at Treasury Department or within banking regulators to guide and fast-track the development of new financial products by start-up companies and organizations seeking to innovate the way consumers and businesses raise and access capital.

(Source: press release; photo credit: Vince Alongi)