Urges Incoming Administration and Congress to Modernize Financial Regulations and Champion Innovation
WASHINGTON, D.C. – The Financial Technology Association (FTA), a trade association representing fintech industry leaders, today released a letter and bold policy roadmap for President-Elect Donald Trump and the 119th Congress. The roadmap outlines urgent steps to modernize financial regulations and embrace digital innovation, unlocking a better financial future for millions of Americans.
“Digital innovation is transforming how we spend, save, manage, and invest our money,” said President and CEO Penny Lee. “Yet, many of our current laws and regulations remain stuck in the analog age. Modernizing these laws can enhance access, affordability, and security in financial services while ensuring America remains a global leader in fintech.”
The roadmap highlights fintech’s vital role in:
- Expanding Access: Services like no-fee banking, early wage access, and streamlined payments are reaching underserved communities.
- Empowering Small Businesses and Start-Ups: Providing access to affordable capital, cash flow management tools, and growth solutions for entrepreneurs.
- Protecting Consumers: Strengthening efforts against fraud and scams while enhancing data privacy and security.
Key Policy Priorities for the First 100 Days
FTA calls on the new Administration and Congress to:
- Appoint Innovation-Focused Leaders: Nominate regulators who understand the benefits of responsible innovation and are willing to engage in collaborative policymaking.
- Modernize Payments Infrastructure: Grant non-bank companies access to the national payments system and establish an optional federal payments charter.
- Curb Regulatory Overreach: Reassess rules that impede innovation in payments, buy now pay later, earned wage access, brokered deposits, fraud prevention, and the use of AI.
- Strengthen Bank-Fintech Collaboration: Provide regulatory clarity that encourages partnerships between banks and fintechs, ensuring equitable access to financial services.
- Empower Consumers Through Open Banking: Safeguard consumers’ rights to access and control their financial data in secure, user-friendly ways.
- Combat Financial Fraud and Scams: Implement a national strategy to protect consumers from increasingly sophisticated financial threats.
- Advance AI Governance in Finance: Refine frameworks for the responsible use of AI in financial services, ensuring transparency while expanding accessibility and effectiveness.
- Support Small Business Growth: Simplify processes for small businesses to start, scale, secure funding, and integrate innovative technologies to drive success.
- Increase Investor Access: Modernize the definition of an accredited investor and encourage healthy, robust, and accessible markets that help Americans build wealth and save for retirement.
FTA also emphasizes the fintech industry’s commitment to working with policymakers to create a future of finance that is accessible, affordable, and secure for all Americans.
“We’re ready to work with the new Administration and Congress to create a fintech policy framework that supports innovation, protects consumers, and promotes economic growth,” added Lee.
To learn more, read FTA’s letter to the Trump transition and members of Congress and full roadmap for the future of finance.
ABOUT US
The Financial Technology Association (FTA) represents industry leaders shaping the future of finance. We champion the power of technology-centered financial services and advocate for the modernization of financial regulation to support inclusion and responsible innovation.