The American Fintech Council (AFC) has submitted a comment letter to the House Committee on Financial Services and its Subcommittee on Financial Institutions, urging lawmakers to update federal consumer financial data privacy laws. The move comes in response to a request for feedback from committee leaders Chairman French Hill and Subcommittee Chairman Andy Barr.
In its letter, AFC expressed appreciation for the leadership of both chairmen and pointed out that while the Gramm-Leach-Bliley Act (GLBA) has provided the basis for consumer financial data privacy, evolving technology and changing consumer expectations require an updated legal framework. The council called for comprehensive federal legislation that would preempt state laws, aiming to create uniform protections for consumers nationwide.
Ian P. Moloney, Senior Vice President and Head of Policy and Regulatory Affairs at AFC, stated: “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. 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’s recommendations include clarifying definitions within GLBA, aligning with other privacy standards, and maintaining key exemptions so financial institutions can continue essential operations such as identity verification, fraud detection, transaction processing, and compliance with regulations. The council also stressed the need to codify consumer data rights without restricting access to innovative tools or services.
Hayden Cole, Director of Federal Government Affairs at AFC said: “We appreciate our partnership and collaboration with the House Financial Services Committee and its leadership. 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.”
AFC is recognized as a trade association representing leading fintech companies and banks offering embedded finance solutions. Its mission focuses on supporting responsible innovation in financial services by promoting transparency, inclusion, customer focus in policy-making processes. Members are known for fostering competition in consumer finance markets.