Hotels are locally regulated, with side effects for maybe one town if a few go backrupt. This gives nationwide startups leeway to out-innovate regulators. Banks

Hotels are locally regulated, with side effects for maybe one town if a few go backrupt. This gives nationwide startups leeway to out-innovate regulators. Banks can have a much larger reach if they fail, and so are federally regulated. This prevents the same from happening. There are no startups seeking to out-innovate the FAA, for example.