Proposal creates a patchwork of state laws that undermine national framework and responsible bank-fintech partnerships

Washington, D.C. (February 11, 2026) – The American Fintech Council (AFC), the largest industry association representing both responsible fintech companies and innovative partner banks, announced its opposition to proposed legislation that would create a fragmented state-by-state rate cap structure, warning the bill would reduce access to responsible and affordable credit for millions of Americans, disrupt consumer credit markets, and increase compliance complexity for responsible providers. In a letter to the Senate Committee on Banking, Housing, and Urban Affairs, AFC emphasized that while it shares lawmakers’ goal of improving household financial health, the proposal would move consumer credit markets in the wrong direction.

“Expanding access to safe, affordable credit is critical to helping families manage everyday financial challenges, but this bill would have the opposite effect,” said Phil Goldfeder, CEO of the American Fintech Council. “By undermining the established national framework, this legislation risks cutting off access to mainstream credit, raising costs for responsible providers, and pushing consumers toward less transparent and more expensive alternatives.”

In its letter, AFC outlines how the legislation would impose a residency-based, state-by-state interest rate regime on credit products offered nationally. This approach would upend the longstanding federal framework with a fragmented patchwork of state laws, making it significantly harder for regulated institutions and their fintech partners to offer consistent, responsibly underwritten products nationwide.

“A state-by-state cap creates an operationally unworkable compliance standard for modern digital credit markets and damages the national consistency that enables responsible bank-fintech partnerships to expand credit access,” said Ian P. Moloney, Chief Policy Officer of the American Fintech Council. “The bill fundamentally contradicts well-established statutory precedence that has underpinned the U.S. financial services industry for centuries.”

AFC reaffirmed its commitment to working constructively with policymakers on solutions that strengthen household financial health while preserving access to responsibly priced credit and maintaining clear, consistent rules for regulated institutions and their fintech partners.

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.

‍