Proposed bill HB 4116 would disadvantage Oregon state-chartered banks and limit financial options for Oregon families

Salem, OR (February 4, 2026) – The American Fintech Council (AFC), the largest industry association representing both responsible fintech companies and innovative banks, testified before the Oregon House Committee on Commerce and Consumer Protection in opposition to House Bill 4116. The legislation would opt Oregon out of the Depository Institutions Deregulation and Monetary Control Act (DIDMCA), a federal law designed to ensure parity between state and federally chartered banks. In his testimony before the House Committee on Commerce and Consumer Protection in Salem, AFC CEO Phil Goldfeder outlined concerns that the proposed bill would undermine successful bank-fintech partnerships, harming Oregon’s community banks and restricting access to responsible credit.

“Oregon’s community banks play a vital role in supporting families, small businesses, and local economies,” said Phil Goldfeder, CEO of the American Fintech Council. “As we have warned in Colorado, this legally questionable legislation would make it harder for local banks to compete and would limit the availability of safe, affordable credit options for the people who depend on them. Oregon lawmakers have an opportunity to protect community banks, support local innovation, and ensure families continue to have access to responsible financial solutions.”

Goldfeder’s testimony further noted that Oregon regulators already have the authority to enforce the state’s interest rate cap and protect consumers, making the opt-out unnecessary. He warned that opting out of DIDMCA would not strengthen consumer safeguards, but instead disrupt a well-established regulatory framework by imposing new restrictions on Oregon’s state-chartered community banks while leaving national banks untouched, shifting market power away from local lenders and toward the largest financial institutions.

“Community banks in Oregon rely on partnerships with responsible fintech companies to expand services, bring innovative solutions to market, and remain competitive with national lenders,” said Ashley Urisman, Director of State Government Affairs at the American Fintech Council. “This bill would disrupt these collaborations, creating unnecessary barriers for banks and limiting the financial tools available to families and small businesses across the state.”

AFC urges Oregon lawmakers to preserve a competitive, risk-based regulatory framework that supports responsible innovation, protects consumers, and allows community banks to continue partnering with fintech companies to meet growing demand for accessible, transparent, and innovative 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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