“AFC has long advocated for regulatory modernization that enables and promotes innovation but also holds innovators accountable. We enthusiastically support the reintroduction of the Financial Services Innovation Act by House Financial Services Committee Chairman Patrick McHenry and encourage bipartisan support. The legislation represents a pragmatic path to building a clear and consistent framework for how federal agencies should engage with innovation in financial services.

As we noted in our recent letter to the Federal Deposit Insurance Corporation (FDIC), agency engagement with industry is crucial to ensuring a pragmatic regulatory framework and effective oversight of the modern banking system. AFC’s consistent engagement with the numerous innovation offices and agency staff at the federal and state levels has helped build knowledge for both industry and agency participants about innovative financial service offerings and the regulatory frameworks within which they operate.

This act will create a more unified and beneficial approach to innovation at the federal level by establishing a dedicated “front door” and statutorily mandated process for receiving and addressing requests to modernize agency regulations across the complex federal financial regulatory landscape. More importantly this legislation sends an important signal to innovators that federal regulators can help advance the financial services industry for the benefit of consumers and the companies serving them.

AFC looks forward to continuing our work with policymakers and regulators to modernize the financial services regulatory ecosystem and ensure that responsible innovators are not stymied in their efforts to safely and effectively serve consumers.”