WeVote
Log In

Bill

Bill

HB 2418

Prohibiting the office of the state bank commissioner or any other state agency from becoming a receiver for a technology-enabled fiduciary financial institution that becomes insolvent or declares bankruptcy.

2025-2026 Regular Session

Kansas bill prohibits state agencies from managing receivership of bankrupt fintech financial firms, shifting responsibility to unspecified alternative mechanisms.

Died in Committee
#financialinstitutions
0
WeVote Research Nonpartisan
Bill Summary · HB 2418

Legislative bill overview

HB 2418 prevents Kansas state agencies, particularly the office of the state bank commissioner, from serving as a receiver or administrator for insolvent technology-enabled fiduciary financial institutions. This means when fintech-based financial firms that manage customer assets fail, state government would not take control of their operations or assets—leaving that responsibility to other mechanisms.

Why is this important

Technology-enabled fiduciary institutions (like digital wealth management firms or robo-advisors) manage significant customer assets and financial data. Who handles a failure matters enormously for customer protection, asset recovery, and operational continuity. This bill fundamentally shifts responsibility away from state regulators, raising questions about who actually would manage a crisis and whether customers' funds remain protected.

Potential points of contention

  • Consumer protection gap: Removing state agencies from receivership could leave customers without a designated responsible party if their assets are frozen in an insolvency, creating uncertainty about asset recovery
  • Regulatory clarity: The bill doesn't specify what entity would handle receivership, potentially creating a legal vacuum that could delay crisis response and harm depositors/investors
  • Industry lobbying concerns: The restriction may reflect fintech industry preferences to avoid state oversight while failing, raising questions about who benefits from reduced regulatory involvement

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.