In response to House Financial Services Committee request, AFC thanked Committee Chairman French Hill and Subcommittee Chairman Andy Barr for their leadership

Letter calls for new comprehensive federal legislation that strengthens consumer protections while enabling responsible innovation

Washington, D.C. (September 2, 2025) – The American Fintech Council (AFC), the premier industry association representing responsible fintech companies and innovative banks, submitted a comment letter to the House Committee on Financial Services and Subcommittee on Financial Institutions in response to their Request for Feedback on Current Federal Consumer Financial Data Privacy Law and Potential Legislative Proposals. In its letter, AFC thanked Chairman French Hill and Andy Barr and noted that the Gramm-Leach-Bliley Act (GLBA) has long served as the foundation for consumer financial data privacy, but rapid changes in technology, data use, and consumer expectations require a more modern, harmonized framework. AFC urged key committees to build on GLBA by enacting a comprehensive federal data privacy law that provides preemption of state laws and ensures consistent consumer protections nationwide.

“The current patchwork of state privacy laws and the limits of the existing federal framework have created uncertainty for consumers and challenges for responsible providers,” said Ian P. Moloney, SVP and Head of Policy and Regulatory Affairs at AFC. “Modernizing the GLBA through a comprehensive, preemptive federal standard will not only strengthen consumer trust, but also provide clarity for institutions, reduce regulatory fragmentation, and ensure that responsible innovation continues to expand financial opportunity for all Americans.”

AFC recommended updates to the GLBA that would clarify definitions, align with other privacy frameworks, and preserve crucial exemptions allowing financial institutions to perform essential functions such as identity verification, fraud detection, transaction processing, and regulatory compliance. In addition, AFC emphasized the importance of codifying consumer data rights while maintaining existing policies that allow innovative tools to thrive — ensuring a framework that protects consumers, expands access, and drives responsible innovation across the financial ecosystem.

“We appreciate our partnership and collaboration with the House Financial Services Committee and its leadership,” said Hayden Cole, Director of Federal Government Affairs at the American Fintech Council. “Congress has a pivotal opportunity to create a data privacy framework that meets the evolving needs of consumers, responsible fintech providers, and financial institutions. A strong federal standard would give consumers greater control over their data, while allowing fintech companies and their bank partners to deliver secure and affordable financial products.”

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.

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