U.S. Financial Services Committee’s Digital Assets Subcommittee holds hearing on fintech products and fit-for-purpose regulation

The U.S. House Financial Services Subcommittee on Digital Assets, Financial Technology, and Artificial Intelligence held a hearing to examine the financial technology landscape and how fintech products fit within the U.S. financial system and regulatory framework. In prepared opening remarks, Subcommittee Chairman Bryan Steil argued that regulation should be “fit for purpose”, with clear legal pathways for products that meet consumer demand alongside strong consumer protections. Steil highlighted innovations including earned wage access (EWA), payments, cryptography and artificial intelligence, and “buy now, pay later” options, describing EWA as a tool that allows workers to access wages as they earn them to help manage unexpected expenses and recurring bills. He also emphasized that fintech products often coexist with traditional financial institutions, with banks and other lenders providing liquidity, credit and access to infrastructure such as payment rails, and said a well-functioning fintech framework should focus on risks posed by specific activities rather than the identity or business model of the provider. Steil said the hearing and witness testimony would inform ongoing efforts to support balanced regulation that encourages innovation while ensuring customer protection.