Morrison & Foerster partner Dario de Martino spoke to Roll Call about new foreign investment rules that would expand the types of transactions that come under CFIUS jurisdiction, and how these could affect mergers and acquisitions in the global financial technology market.

“CFIUS is assuming a more prominent role in M&A deals,” Dario said, noting that several global merger deals have been blocked or abandoned in recent years after CFIUS objections.

The new rules could also mean increased regulatory risks for fintech deals, though Dario says it’s not always clear which rules will apply in this emerging sector. “The U.S. fintech regulatory landscape is in flux,” according to Dario. “There are no bright lines or clear rules. It’s just one of the growing pains that historically come with the quick development of new industries.”