The American Fintech Council (AFC) has called on the Senate Banking Committee to advance the SMART and TRUST Acts, two bills that recently received bipartisan approval from the House Financial Services Committee. The proposed legislation is designed to update how banks are supervised by regulators, focusing oversight and examination practices on the actual size, risk profile, and complexity of financial institutions.
According to AFC, the SMART Act would require regulatory agencies to use supervisory testing tools in a way that matches an institution’s risk level. The TRUST Act would allow more community banks to qualify for less frequent examinations while maintaining standards for safety and 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 stated that updating supervisory processes could improve regulatory efficiency and help foster responsible innovation in financial services. By making oversight more tailored, AFC believes regulators can focus on higher-risk areas without hindering access to quality financial products.
“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.”
The AFC describes itself as a standards-based trade association representing major fintech companies and innovative banks offering embedded finance solutions. Its mission includes promoting transparency, inclusion, customer focus in finance through responsible innovation, supporting public policy efforts in these areas, encouraging competition in consumer finance markets, and developing products aimed at underserved consumers.