The American Fintech Council (AFC) has expressed support for the Department of the Treasury's initiative to establish a federal framework for nonbank payment service providers. Ian P. Moloney, Senior Vice President and Head of Policy and Regulatory Affairs at AFC, highlighted the importance of creating a unified regulatory approach in the payments sector.
Moloney stated, "AFC supports the goals of creating a federal framework for nonbank payment service providers and developing a unified approach to regulations in the payments space." He emphasized that innovations in payments with both national and international implications require such a federal regulatory structure.
The AFC has consistently advocated for consistent regulatory oversight to prevent a fragmented supervisory landscape. According to Moloney, "Inconsistency stemming from a patchwork regulatory framework harms consumers, industry participants, and the resilience of the financial services ecosystem by inadvertently encouraging regulatory arbitrage."
Moloney also referred to comments made by Nellie Liang, Under Secretary for Domestic Finance, during the Chicago Payments Symposium. Liang discussed essential elements that promote innovation and competition through a "calibrated, regulatory framework for bank and nonbank payments providers," which aligns with AFC's objectives.
Expressing optimism about these developments, Moloney remarked, "AFC is encouraged by the U.S. Department of the Treasury’s efforts to modernize the regulatory environment within the payments space." He believes that establishing this framework will foster responsible innovation both domestically and internationally.
Finally, Moloney commended the Department's dedication to involving all relevant stakeholders in modernizing federal regulations pragmatically: "We applaud the Department’s steadfast commitment to engaging with all relevant stakeholders in an effort to proactively modernize the federal regulatory environment in a pragmatic manner."