The European Union has introduced the Digital Services Act (DSA) and Digital Markets Act (DMA) to regulate and modernize digital services, aiming to create a fair and secure online marketplace for consumers and businesses. The DSA focuses on setting new standards for content moderation, transparency, and user rights across online platforms and e-commerce companies, while facilitating market entry for startups. The DMA targets digital gatekeepers to prevent anti-competitive behavior, promote data sharing, and ensure market interoperability. Plaid plays a critical role in compliance with these regulations by providing a streamlined, secure method for bank account verification using their open banking API, which helps reduce fraud, simplifies user onboarding, and builds trust through transparent data handling.