WASHINGTON, D.C. – The Financial Technology Association (FTA) today submitted a comment letter to the Internal Revenue Service (IRS) and Department of the Treasury outlining recommendations to help Trump Accounts achieve their intended scale and impact by prioritizing competition, interoperability, and digital accessibility. The comments respond to proposed regulations under the One Big Beautiful Bill Act (OBBBA), which establishes tax-advantaged savings accounts for American children.
“Trump Accounts are a historic opportunity to give every American child a jumpstart to financial security,” said Penny Lee, FTA President and CEO. “Fintech companies are ready to be a key part of making that happen. They have the technology, the consumer relationships, and the compliance infrastructure to make these accounts work at scale. We look forward to working with Treasury and the IRS to build a framework that brings these accounts to families through the digital tools they use every day.”
Eight in ten Americans already manage their money through a fintech app, whether it’s a banking tool, payment platform, or investing service. These fintech tools have achieved mass adoption because consumers value the speed, transparency, and convenience they offer. Meeting Americans where they are – with the digital financial tools they use – will be key to ensuring that Trump Accounts can build a new generation of American savers.
FTA’s comments outline five key recommendations to help achieve those goals and maximize the impact of Trump Accounts:
- Optimize origination, onboarding, and portability by authorizing qualified providers to originate accounts directly as allowed by the OBBBA, permitting zero-balance account openings, and allowing providers to easily initiate rollovers and enrollment on behalf of consumers.
- Standardize technical infrastructure by mandating the use of the Automated Customer Account Transfer Service (ACATS) for all trustee-to-trustee transfers and establishing a real-time API framework between authorized providers and government systems for essential program elements like eligibility verification and duplicate contribution prevention.
- Modernize trustee and fiduciary standards by transitioning to a digital, automated, nonbank trustee-approval process and confirming that providers can satisfy fiduciary obligations through qualified subcontractor partnerships for key functions such as custody and clearing.
- Ensure investment flexibility and cost transparency by confirming that low-cost ETFs and fractional shares qualify as eligible “Broad Index” investments and clarifying that the 0.1% expense cap applies to the underlying investment’s expense ratio at the fund level — not separate platform service fees.
- Guarantee inclusive access by providing explicit guidance on account management for children in non-traditional family structures, including those in foster care, and encouraging modern digital identity verification tools to reduce administrative barriers.
Read the full comment letter here.
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The Financial Technology Association (FTA) is a network of fintech industry leaders shaping the future of finance. We champion financial innovation and advocate for policies that expand competition, access, and opportunity.