AFC Urges Fed to Streamline Payment Account Framework

The American Fintech Council (AFC) has submitted a letter to the Federal Reserve in support of its proposed Payment Account framework. The AFC, which represents fintech companies and innovative banks, argues that the framework is a step towards modernizing access to Fed payment rails.

The AFC's recommendations focus on three areas: clearer eligibility standards, proportionate operational safeguards, and coordination across federal regulators to avoid duplicative compliance requirements.

According to Phil Goldfeder, chief executive of the AFC, the framework 'can promote competition, improve payment efficiency, and support responsible innovation while preserving the integrity of the Federal Reserve System.'

The AFC also called for a principles-based approach rather than a prescriptive one, arguing that a rules-heavy approach risks becoming outdated as payment technology evolves.