It's hard to see from the outside how much innovation is stifled due to regulators - but from my position it is a substantial amount. Part of the basic problem is that the very large and very successful companies have captured their regulators and have much more freedom to innovate when they are interested. But they are usually not interested in innovating because that are already big and successful.

This is in contrast to the growing startup which is under the regulator microscope.

The UK has the idea of a "Challenger Bank" for starups in the banking industry. The US should have a similar program.

(FWIW, Zac and I have talked about this a lot.)