By Angelena Bradfield, Head of Policy, Financial Technology Association
With midterm elections, 36 gubernatorial races, and 84% of state legislature seats on the ballot, voters across the country are focused on the cost of living and how to keep more money in their pockets. What does that mean for fintech?
As policymakers seek concrete answers on affordability, fintech is delivering real solutions to help Americans manage their money more efficiently and effectively. FTA member companies are proving every day that competition, innovation, and consumer choice drive down costs while expanding access to financial services.
Below are our top six issues to watch for in 2026 as we will continue to push for smart fit-for-purpose legislation and regulations at the state and federal levels that protect consumers while supporting these innovative products.
Open Banking Rights at Stake
This year will be impactful as policymakers and the courts consider the key policy issues at stake in the Section 1033 open banking rule, which guarantees consumers the right to securely control and share their financial data with authorized representatives without incurring a fee.
We expect the CFPB to issue either an interim final rule or notice of proposed rulemaking soon. Key issues at stake: (i) consumers having the right to securely access and share their data with authorized third parties; (ii) data provided upon request, as stated in statute – not with a fee attached to it; (iii) agent, trustee, or representative not requiring a fiduciary relationship, (iv) data shared in a safe and secure manner; and (v) inclusion of a broad scope of data and accounts, including application of the rule to all forms of payment initiation services.
Payments Modernization on the Horizon
Americans deserve access to faster, cheaper payments. Now is the time to modernize our payments infrastructure so that well-regulated and supervised payment firms can participate directly in the national payments system.
Last year, the Federal Reserve proposed a payments account prototype (aka “skinny master account”) that provides access to some Federal Reserve payments and clearing services, but not all key rails, like FedACH. While this is a positive step forward, in order to make cheaper, faster payments available to all, all core payment rails should be included. This issue will evolve quickly as Federal Reserve Board Governor Waller has indicated he would like these accounts “operationalized” by the end of 2026.
Separately, FTA will continue to push for its key payments modernization policy priorities, including nonbank payment company access to Federal Reserve services and the adoption of the Conference of State Bank Supervisors (CSBS) Money Transmission Modernization Act (MTMA). Both initiatives complement the Federal Reserve’s efforts to modernize the framework for Fed master accounts, which would help consumers and small businesses move money more cheaply and instantaneously, a huge boon for the economy.
Continued Advocacy for Diverse Chartering Options
The U.S. has a strong dual chartering system that provides financial institutions with options that fit the products and services they offer to consumers and small businesses, while mitigating risks tailored to the authorized activity under each charter. This charter landscape has evolved over the years – a byproduct of thoughtful policymaking – giving federal and state financial regulators broad authority to issue novel charters.
Press reports indicate that the banking agencies have received 30 charter applications since the beginning of the second Trump Administration – with more expected – and we have already seen the OCC announce conditional approvals of five national trust bank charters. FTA supports the diverse financial services chartering landscape, which allows consumers and small businesses to benefit from competitive options. We look forward to engaging with regulators as they consider current charter applications and authorities to encourage a vibrant, competitive, and innovative ecosystem.
Appropriate Rules for Consumer Finance Products
We started the year with positive growth for fintech consumer finance products. Adoption is increasing as more Americans benefit from flexible, transparent, and affordable products like Buy Now Pay Later (BNPL) and Earned Wage Access (EWA). In the policy realm, last week, bipartisan draft legislation was introduced that would appropriately recognize EWA as a non-credit product and establish a first-of-its-kind federal regulatory framework. This legislation – championed by Reps. Bryan Steil (R-WI) and Ritchie Torres (D-NY) – acknowledges how much workers value having access to the wages they have already earned and the importance of regulatory clarity to protect access to EWA.
Growing Adoption of Artificial Intelligence
While it was not used to write this blog, it’s no surprise that the future of artificial intelligence (AI) and its potential impact across all sectors, including financial services, will be a policy focus this year. From agentic commerce to hyperpersonalization and AI-powered fraud fighting, we are at a pivotal moment for this technology as its use expands to more directly assist consumers.
It’s important to note that AI has been used in financial services for decades, and its use is subject to comprehensive model-focused compliance and regulatory frameworks. Currently, AI is being used to remove embedded bias from credit underwriting, improve financial offerings, enhance compliance programs, prevent fraud and illicit finance, and reduce risk.
FTA believes that any AI policy framework should avoid regulatory fragmentation and enhance data access and privacy protections, while leveraging well-established risk management frameworks and other tools to support standard-setting and training.
Evolving Role of the States
As fintech companies are subject to both activity- and entity-based regulatory frameworks, state legislators and regulators can have a significant impact on the products and services they offer. Many fintechs have state charters and are supervised and examined in multiple states.
In the last few years, we have seen the states play a significant role in this space – from the wide adoption of the MTMA and EWA regulatory frameworks to an increased focus on AI. We expect a busy 2026 in the states as policy discussions on these and other core fintech issues continue.
FTA supports state initiatives that provide appropriate, clear rules of the road for fintech providers and avoid regulatory fragmentation, given the borderless nature of digital financial services. As products and services continue to evolve, we look forward to working with regulators and policymakers on measures that reflect this transition and encourage innovation.