Press Releases

Yesterday, the House Financial Services Subcommittee on Digital Assets, Financial Technology, and Artificial Intelligence, led by Chair Bryan Steil (WI-01), examined the current financial technology landscape and how these products fit within the U.S. financial system and regulatory framework.

On the Importance of FinTech Innovation:

Chair Steil said, "FinTech products that meet consumer demand and improve Americans’ financial lives should have clear, practical legal pathways for operation and strong consumer protections. By supporting thoughtful and balanced regulations, we can encourage innovation while ensuring customer protection and promoting financial well-being for American households and businesses alike.”

Chairman French Hill (AR-02) said, “This Committee has long championed innovation and responsible partnership between traditional financial institutions and technology companies. That commitment is now more important than ever. We should encourage regulators to foster those partnerships, unlock innovation and reduce unnecessary regulatory burdens.”

Rep. Tim Moore (NC-14) said, “Financial technology is transforming how Americans earn, spend, and save their money. From peer-to-peer payment apps and digital wallets to earned wage access and installation products, FinTech innovations are responding to real consumer needs for speed and affordability. These products exist because they fill gaps in the traditional financial system, especially for consumers who have historically faced limited options or high costs.”

Rep. Troy Downing (MO-02) said, “I think it's incredibly important that we continue to have innovation here in the United States of America and don't have that ambiguity that we have in the past that have made people decide to run their businesses elsewhere without a reasonable framework. Another thing that was really difficult for me as a regulator is the ambiguity we got from the SEC at the time on how to treat these, and a lot of the, you know, enforcement by action rather than having a framework, which is why I think it's really important that we need clarity for digital assets and for artificial intelligence.”

On Outdated Rules Restricting Businesses:

Full Committee Vice Chairman Bill Huizenga (MI-04) questions the witnesses on the challenges startups encounter when devolving new payment systems, to which Ms. Kelley answered, “You know, you have a small startup trying to get into business in 49 different jurisdictions with 49 different licensing requirements. We know that's expensive. We know it costs literally millions of dollars, and we know it takes a long time, as much as two years. And that's a death knell for a small business trying to get up and running. And then, of course, if they do manage to get up and running, there's 49 different compliance regimes they have to apply with.”

Rep. William Timmons (SC-04) said, “I've met with countless innovators who are building products that meet real consumer demand and help families better manage their financial lives, particularly those who have been underserved by the traditional banking system. This progress, however, depends on getting the policy environment right. Outdated rules and inconsistent regulatory interpretations can slow the adoption of beneficial technologies, limit competition, and drive innovation offshore. True leadership and financial innovation mean providing clear, predictable guardrails that promote responsible innovation here in the United States, rather than pushing it overseas.”

Witnesses Echoed the Work of the Committee:

Ms. Jodie Kelley, Chief Executive Officer, Electronic Transactions Association said, “...ETA supports the establishment of a uniform national framework for artificial intelligence that applies consistently across jurisdictions and provides clarity for consumers, merchants, and payments providers. Payment systems operate on a national scale, and effective oversight depends on consistent rules rather than a state-by-state approach. A federal framework should be risk-based, technology-neutral, and focused on real-world outcomes. It should build on existing federal consumer protection, safety and soundness, and financial integrity regimes, rather than layering new, duplicative compliance requirements on top of them. By establishing a clear national standard, Congress can protect consumers, preserve competition, and enable the responsible deployment of AI in payments.”

Mr. Kevin Lefton, Global General Counsel, Stream said, “The arguments that are often presented against Earned Wage Access are fundamentally flawed because they conflate a non-recourse financial wellness tool with high-cost lending products. Labeling EWA as "credit" ignores the basic reality that workers are simply accessing capital they have already earned..”

Mr. Ram Palaniappan, Founder and Chief Executive Officer, EarnIn said, “The stakes for consumers are real. That is why clear, thoughtful regulation matters. A federal framework that recognizes the distinctive features of the different models of earned wage access, insists on strong consumer protections, and places it on a level playing field with overdrafts and other short‑term products can help ensure that this innovation fulfills its promise rather than creating new problems.”

Mr. Todd Zywicki, George Mason University Foundation Professor of Law, Antonin Scalia Law School, George Mason University said, “We live in an exciting era of developments in financial technology. Recent innovations in alternative underwriting and FinTech generally, and products such as EWA and BNPL specifically, are increasing consumer welfare, choice, and competition. But history teaches that continued innovation requires a thoughtful regulatory framework that will facilitate further developments and protect consumers from the efforts of incumbents to block entry and wrongheaded regulation. There is much that this body and regulators can do to facilitate further innovation and competition.”