Letter outlines recommendations for clear compliance standards, risk-based oversight, and adaptive implementation of AI regulations

Denver, CO (July 14, 2026) – The American Fintech Council (AFC), the largest industry association representing both responsible fintech companies and innovative banks, submitted a comment letter to the Colorado Department of Law in response to its Request for Information on the implementation of Senate Bill 26-189, the Colorado Artificial Intelligence Act. AFC urges the Department to implement the law in a way that protects consumers while aligning with the comprehensive federal regulatory framework already governing financial institutions.

"Artificial intelligence has the potential to strengthen fraud prevention, expand financial inclusion, and improve consumer outcomes," said Phil Goldfeder, CEO of the American Fintech Council. "As Colorado implements its AI law, regulators should build on existing safeguards by creating a framework that promotes responsible innovation without imposing unnecessary duplicative requirements."

In its letter, AFC recommends establishing clear, objective, and technology-neutral compliance standards that provide regulatory certainty and promote consistent supervision across the financial services sector. AFC also encourages the Department to adopt a risk-based approach to oversight that reflects the varying uses and risks of automated decision-making technologies. Additionally, the letter recommends ongoing stakeholder engagement and adaptive implementation mechanisms to help ensure the regulatory framework remains effective as AI technologies continue to evolve.

"Effective AI regulation should be practical, risk-based, properly scoped, and flexible enough to evolve alongside the technology," said Ian P. Moloney, Chief Policy Officer of the American Fintech Council. "By providing clear guidance and maintaining an open dialogue with stakeholders, Colorado can establish a durable framework that protects consumers while giving financial institutions the certainty they need to innovate responsibly."

A standards-based organization, the American Fintech Council (AFC) is the largest and most diverse trade association representing financial technology (fintech) companies and innovative banks. On behalf of over 150 member companies and partners, AFC promotes a transparent, inclusive, and customer-centric financial system by supporting responsible innovation in financial services and encouraging sound public policy. AFC members foster competition in consumer finance and pioneer products to better serve underserved consumer segments and geographies.

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