Colorado actions threaten safe and affordable consumer access, national credit markets, and competition

Denver, CO (January 22, 2026) – The American Fintech Council (AFC), the largest industry association representing both responsible fintech companies and innovative banks, responded to the State of Colorado’s filing in the U.S. Court of Appeals for the Tenth Circuit defending its attempt to withdraw from the uniform federal interstate banking framework established under the Depository Institutions Deregulation and Monetary Control Act (DIDMCA). AFC joins the National Association of Industrial Bankers (NAIB) and the American Financial Services Association (AFSA) in filing and warning that the move would set a dangerous precedent and harm consumers nationwide.

“As consumers are struggling with an affordability crisis and tighter household budgets, Colorado is attempting to unravel the national credit framework that keeps financial access competitive and consistent across state lines,” said Phil Goldfeder, CEO of the American Fintech Council. “Their overreach disproportionately limits access to safe and affordable credit for low and moderate income families who need it the most. When responsible lenders are forced out of the market, consumers are left with fewer options, higher costs, and less transparency.”

As outlined in the litigation brought by AFC, NAIB, and AFSA, Colorado’s position would replace a clear federal standard with a fragmented, state-by-state regime in which the terms of everyday financial products could vary based on geography rather than federal law. That uncertainty would increase compliance costs, discourage responsible lending, and accelerate market concentration by favoring the largest federally chartered institutions.

Further, in attempting to assert control over the rates and fees banks chartered in other states can charge, Colorado is claiming a level of national authority over banking which no other state has. Judge Rossman’s dissent is clear that Colorado’s overreach in this matter conflicts with federal law and undermines Congress’s deliberate intent to create uniform national credit markets.

“Congress enacted DIDMCA to ensure interstate banking operated under a uniform, predictable framework and to prevent exactly this kind of regulatory fragmentation,” said Ian P. Moloney, Chief Policy Officer at the American Fintech Council. “Colorado’s argument invites extraterritorial overreach, disregards long-standing precedent, and risks destabilizing national credit markets in ways that ultimately harm consumers.”

AFC, NAIB, and AFSA will continue to urge the court to reject Colorado’s attempt to opt out of federal interstate banking law and to reaffirm the importance of a consistent national framework that preserves competition, protects consumers, and supports responsible innovation in financial services.

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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