The American Fintech Council (AFC) has announced its support for the Unleashing AI Innovation in Financial Services Act, a bipartisan bill introduced by Representative French Hill and Senator Mike Rounds. The legislation, identified as S. 2528 and H.R. 4801, proposes the creation of supervised artificial intelligence innovation labs within federal financial regulatory agencies. These labs are intended to provide a controlled environment for regulators and industry participants to work together on developing and testing AI tools in consumer finance.
Phil Goldfeder, CEO of the American Fintech Council, stated: “AFC has long championed a balanced approach to AI in financial services, one that allows innovative technology to flourish while upholding rigorous safeguards for consumers. By creating clear rules of the road and giving both regulators and companies a safe environment to responsibly innovate around AI, this legislation charts the right course forward. It’s a pragmatic win for financial inclusion, competition, and American global leadership.”
The AFC notes that the establishment of these innovation labs aligns with the White House’s AI Action Plan as well as its own recommendations previously submitted to the Treasury Department. The proposed legislation seeks to foster public-private collaboration, reduce regulatory fragmentation, and ensure that new technologies undergo appropriate risk management and transparency reviews.
Ian P. Moloney, Senior Vice President and Head of Policy and Regulatory Affairs at AFC, said: “The future of financial services depends on policymakers and innovators working hand in hand. This bill does exactly that: it empowers regulators to better understand emerging AI tools and builds a unified, risk-based approach to oversight that enables responsible growth and innovation.” He also commended Senators Rounds, Martin Heinrich, Thom Tillis, Andy Kim; along with Representatives Hill, Ritchie Torres, Bryan Steil, and Josh Gottheimer for their roles in advancing the legislation.
The AFC is recognized as a standards-based organization representing major fintech companies and banks involved in embedded finance solutions. Its mission centers on promoting transparency, inclusion, customer focus in financial systems through responsible innovation and advocacy for sound public policy. Members of the AFC aim to increase competition in consumer finance while providing products designed for underserved markets.