“We have long championed regulatory modernization, including updating the Customer Identification Program (CIP) rule to create parity for similarly situated financial services and bring requirements in line with responsible innovative practices. The FDIC’s approval of the CIP Rule Exemption Order marks a meaningful step forward in modernizing outdated compliance requirements and expanding access to the financial system – a step AFC has consistently called for in multiple letters going back to 2023.

“This decision reflects growing recognition that rigid regulatory interpretations—like requiring full Social Security numbers at onboarding—can needlessly restrict access without improving security. The exemption offers a more flexible, risk-based path that allows financial institutions and their fintech partners to leverage modern identity verification tools while maintaining strong consumer protections. Overall, this approach ensures that compliance with the CIP rule more closely aligns with Congress’ intent.

“We applaud Acting Chairman Travis Hill for his leadership and thoughtful approach to updating this framework. We hope that other agencies will follow the FDIC lead, and we remain committed to working with regulators to support clear, pragmatic policies that enable responsible innovation and ensure more Americans can safely access financial services.”

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