In a statement For the record of a House financial services task force hearing today, the American Bankers Association urged lawmakers to “remain vigilant and deliberate” in their policymaking to ensure that regulations support innovation in mobile banking and payments, rather than overregulate or replace private sector innovators .
Specifically, the ABA called on policymakers to “proceed with caution with large-scale rewiring” of the payments system, urging them to support “cautiously planned” initiatives that are already underway, such as the payments initiatives. private sector real-time and the Federal Reserve’s FedNow service. — rather than pursuing other solutions like creating a central bank digital currency from scratch.
The ABA also highlighted the need for consistent regulatory expectations between bank and non-bank payment providers to ensure consumer protection, security and liquidity. Additionally, as cryptocurrencies become more mainstream, the ABA warned that current regulations restrict banks’ ability to offer these products to their customers and called on Congress to “monitor the actions of regulators that prevent” . ‘
Finally, as banks strive to provide consumers with fast, secure and reliable payment options, the ABA has strongly cautioned against expanding the Durbin Amendment, either through the recent Federal Reserve Regulation II requiring banks of all sizes to allow two unaffiliated payment debit card networks and to accept “pinless” transactions for Internet purchases, or by legislation that would expand the provisions from Durbin to credit cards. Such expansions, if passed, “will most seriously harm community financial institutions that want to participate in digital and mobile payment platforms,” the ABA said.