Theoretical Foundations of Fintech Regulation: Reconciling Innovation, Market Efficiency, and Financial Stability

This article examines the theoretical foundations of financial technology (fintech) regulation from the perspective of the interrelationship between financial innovation, market efficiency, and financial stability. Drawing on economic and institutional theories and international experience, the study analyzes the impact of regulatory mechanisms on innovation, competition, and financial risks. The research proposes the Adaptive Regulatory Reconciliation Framework (ARRF), which integrates risk identification, proportional regulation, controlled experimentation, institutional coordination, and evidence-based adaptive governance. The framework provides a systematic approach to assessing trade-offs and complementarities among regulatory objectives. Its theoretical application to Uzbekistan and other emerging financial markets highlights the importance of differentiated regulatory requirements and institutional cooperation. The study develops four theoretical hypotheses and corresponding assessment indicators aimed at promoting financial innovation while safeguarding financial stability.