Pattern Recognition: Industry seeking regulation – the case of crowdfunding. Bruges Political Research Papers 79/2020

Ambrus, Eva (2020) Pattern Recognition: Industry seeking regulation – the case of crowdfunding. Bruges Political Research Papers 79/2020. [Policy Paper]

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Abstract

At first it seems counterintuitive that an industry would seek regulation over itself, but from the point of view of crowdfunding, it was a logical step. Crowdfunding, as part of FinTech, is changing and challenging traditional financial institutions. The fragmentation of the EU market by national legislation on crowdfunding hindered its growth, and although FinTech is a diffuse interest, crowdfunding, as a pragmatic diffuse interest, formed legitimacy coalitions with the regulators. Utilizing Trumbull’s framework on pragmatic diffuse interest, my aim is to demonstrate through this case study that the industry lobby had influenced the agenda-setting and the policy-shaping, but only to the extent that there wasn’t conflicting interest from consumer groups. This is in line with previous finding on financial industry lobbying and some preliminary findings emerge, although as the proposal is still in first reading stage, the end results and conclusions remains to be seen

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