It has been a lean legislative session in Congress for fintech. But this week some progress was made on earned wage access.
But on Wednesday we learned that the Earned Wage Access Consumer Protection Act advanced in the House Financial Services Committee. This bill aims to provide a federal regulatory framework for companies offering this product.
The states have taken the lead when it comes to earned wage access regulation with Nevada, Missouri and Wisconsin all adopting new regulations. But there has been little movement at the federal level until now.
The new bill is strong on consumer protections, setting strict boundaries for both the employer and direct-to-consumer models. It still has a long way to go to become law, but it is a positive first step.
I am a big fan of this product, as I think it is the one fintech innovation with the most potential to transform financial health on a massive scale.
And it just makes sense. We live in an on-demand world, we shouldn’t have to wait two weeks to receive wages we have already earned.
Featured
> Congress Advances Earned Wage Access Bill as Popularity Grows
When is a loan not a loan? That is, in one sense, the question at the heart of proposed new federal legislation around earned wage access (EWA) that is coming on the heels of multiple states debating their own regulations in the absence of substantial federal rules around EWA products.
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