Sarcouncil Journal of Economics and Business Management

Abstract: The financial industry in the United States is experiencing a swift digital transformation, the result of fintech breakthroughs in payments, trading, and compliance. Although the use of Fintech is potentially efficient, more inclusive, and cost-effective, it poses system risks, consumer protection distress, and regulatory risks. The study will evaluate the contribution of artificial intelligence, blockchain, and regulatory sandboxes to transform financial business operations; analyze the flexibility of regulation under a fragmented U.S. system; and compare results using successful and unsuccessful cases of fintech integration. This analysis identifies Square (now Block Inc.) as a successful example of payments innovation by increasing Small and Medium-sized Enterprise (SME) inclusion and systemic resilience, and aligning compliance. However, the trading platform of Robinhood still exhibits problematic growth, and the GameStop short squeeze of 2021 revealed issues of liquidity fragility, consumer risk, and regulatory loopholes. The conclusions indicate that press management participation is proactive, AI governance is ethically essential, and the existence of systematic experimentation models, like sandboxes, is necessary to maintain the innovation process without directly weakening the integrity of the marketplace. The conclusion reiterates that harmonized oversight and sound governance mechanisms are needed to steer the adoption of fintech. Finally, the work adds to the comprehension of how regulatory frameworks may develop to safeguard consumers and systemic stability but allow the safe digital transformation of U.S. financial activities.