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Today, the House Financial Services Committee is holding a Full Committee hearing to examine payments innovation, the evolving role of banks and fintechs, and the opportunities and risks associated with special-purpose charters.

Read Subcommittee on Financial Institutions Chairman Andy Barr's (KY-06) remarks as prepared for delivery:

"Good morning.

"The Amerian payments system is a critical component of our financial infrastructure. It supports everything from payroll and commerce to lending and investment, allowing money to move throughout the economy efficiently, securely, and reliably.

"For generations, the United States has benefited from having one of the strongest and most trusted financial systems in the world. 

"That success rests on a foundation of innovation, competition, and confidence, and a modern economy depends on a payments system capable of supporting all three. 

"Today, new technologies, business models, and market participants are reshaping the payments landscape, creating new opportunities to improve efficiency, expand access, and strengthen competition. This market-driven evolution, in turn, raises important questions about the future of our regulatory framework.

"Mobile payment applications, digital wallets, real-time payments, and other emerging financial services technologies are becoming increasingly common, changing the way consumers, businesses, and all Americans interact with our financial system.

"As new entrants seek to provide payment services, questions regarding chartering, supervision, and access to payment infrastructure have become increasingly important.

"As our financial landscape has evolved, we have seen the emergence of specialized institutions operating under different legal and regulatory frameworks, including industrial loan companies, trust banks, money transmitters, and other special-purpose entities designed to provide specific financial services.

"Today's discussion will provide Members an opportunity to examine the latest developments in payments innovation and explore the role that banks and financial technology firms play in facilitating payments.

"Members will examine the history and purpose of various bank and non-bank charters.

"We will also review the regulatory and compliance obligations associated with these different structures.

"These developments raise important questions about regulation, risk management, competition, and access to critical financial infrastructure. 

"As innovation continues to transform financial services, it is the responsibility of Congress to assess how existing regulatory and chartering frameworks are adapting to new technologies and business models.

"We must ask whether existing frameworks provide sufficient clarity for firms seeking to offer innovative payment services, whether regulation is being applied consistently across institutions, and whether there are opportunities to reduce unnecessary complexity while maintaining strong safeguards for consumers and businesses.

"Committee Republicans remain committed to advancing policies that provide greater regulatory certainty, consistency, and transparency to support innovation while maintaining the strong safeguards that underpin confidence in the U.S. financial system.

"We must ensure that the United States maintains a payments system that is dynamic and capable of supporting a twenty-first century economy. 

"Achieving that goal requires fostering innovation, entrepreneurship, and competition while preserving the safety, stability, and trust that have long been the foundation of our financial system.

"I look forward to hearing from our witnesses today, and I yield back."