Bipartisan legislation passed by House Financial Services Committee would promote tailored, risk-based oversight and support responsible innovation

Washington, D.C. (August 6, 2025) – The American Fintech Council (AFC), the premier industry association representing responsible fintech companies and innovative banks, today submitted a letter to the Senate Banking Committee urging members to advance the SMART and TRUST Acts, two bills recently passed by the House Financial Services Committee with broad bipartisan support. The bills aim to modernize regulatory oversight by tailoring supervision and examination practices based on the actual size, risk profile, and complexity of financial institutions. The SMART Act would require regulators to apply supervisory testing tools more proportionally, while the TRUST Act would expand eligibility for community banks to undergo less frequent exams without compromising safety or soundness.

“These bills reflect a pragmatic shift toward smarter, more risk-sensitive supervision,” said Phil Goldfeder, CEO of the American Fintech Council. “At a time when responsible innovation is reshaping the delivery of financial services, regulators must move away from one-size-fits-all oversight and toward approaches that are principled, proportional, and predictable. The SMART and TRUST Acts are exactly the kind of bipartisan, thoughtful solutions that support strong oversight while empowering responsible financial institutions to better serve their communities.”

AFC emphasized that modernizing supervisory processes will not only improve regulatory efficiency, but also create space for responsible innovation to thrive. By adopting a more tailored approach to oversight, regulators can focus attention where risk is most concentrated while removing barriers that slow progress and limit access to high-quality financial tools.

“From a regulatory standpoint, it is crucial to ensure that supervisory requirements and examination processes are commensurate with the actual risk profile of a financial institution and allow for the use of innovative tools by both the regulators and those they supervise,” said Ian P. Moloney, SVP and Head of Policy and Regulatory Affairs at AFC. “Importantly, this approach helps preserve the safety and soundness of the financial system while making the industry more resilient, competitive, and inclusive. We urge the Senate to take up the SMART and TRUST Acts and continue building a regulatory architecture that reflects the modern financial ecosystem.”

A standards-based organization, AFC is the premier trade association representing the largest financial technology (Fintech) companies and innovative banks offering embedded finance solutions. AFC’s mission is to promote 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.

‍