Block CEO Jack Dorsey says the company will focus on engineering to make sure that the company is way ahead of the regulatory asks.
On the earnings call held after the quarterly results announcement, Wolfe Research’s Darrin Peller asked Dorsey about the regulation going on around fintech banks that will impact Block and what the company is doing about compliance.
Replying to him, the CEO said, “There was just an election, and we have no idea what’s going to happen with the broader regulatory. So, we’re focused on what we can control and making sure that we continue to build stronger systems as the horizon evolves and as more and more people come onto the financial network.”
He said he is focused on bringing more people into the ecosystem by applying better technology.
“A big reason we functionalize the company and really focus on engineering is we see opportunity to really leverage technology a lot more in our approach and make sure that we’re way ahead of the regulatory asks and everything happening with compliance and risk,” the executive said.
A Payments Dive report said, “The Consumer Financial Protection Bureau, which has been aggressive in challenging new digital payments tools during the Biden administration under Director Rohit Chopra, is likely to take a new tack.”
Trump’s pro-crypto stance could prove positive for Block, which has exposure to Bitcoin ($BTC.X). The regulatory clarity on the crypto front will help the company move much faster, said Dorsey, adding that it is a net positive for the industry.
Block holds Bitcoin in its balance sheet, and it allows buying, selling, receiving and sending the apex crypto through its Cash App mobile payment platform.
The company reported mixed third-quarter results, with earnings exceeding expectations, while revenue trailed estimates.
The stock settled the after-hours session on Thursday at $73.95, down 1.75%.
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