The Securities and Exchange Commission (SEC) is reopening public consultations on proposed regulations for online lending platforms, marking a step toward lifting its moratorium on registering new digital lenders.
In a notice issued on Tuesday, the SEC invited financing and lending firms, industry groups, and consumer advocates to comment on a revised circular that sets requirements for online lending platforms (OLPs). The regulator said it substantially revised the proposal after reviewing feedback from earlier consultations.
The changes aim to address industry concerns, enhance regulatory clarity, reduce unnecessary compliance burdens, and simplify implementation. Key revisions include updated definitions and classifications of OLPs, as well as new requirements for capital, licensing, business plans, operations, CIC compliance, consumer protection, and transition.
The revised draft also introduces prudential measures to strengthen oversight of digital lending activities.
According to the SEC, the updated proposal takes a streamlined, disclosure-focused approach that remains proportional to the risks of online lending. The regulator noted that the new framework differs significantly from the earlier version.
Interested parties have until June 15 to submit written comments, recommendations, and position papers via an online portal. The SEC stated that the feedback will help balance consumer protection, operational feasibility, and the growth of digital lending and financial technology.