USA Trends and Developments Contributed by: Donald J. Mosher, Kara A. Kuchar, Melissa G.R. Goldstein, Jessica Romano and Adam J. Barazani, Schulte Roth & Zabel LLP
Schulte Roth & Zabel LLP 919 Third Avenue
New York NY 10022 USA
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In the United States, the fintech sector contin - ues to integrate innovative technology with tradi - tional financial services, reshaping how consum - ers and businesses access, manage, and move money. Building on its position as a leader in technology innovation, the country is seeing fin - tech companies introduce increasingly sophis - ticated products, including embedded finance solutions, AI-powered fraud detection systems, and blockchain-based payment platforms. Key financial products driving momentum in the fintech space include digital wallets, buy-now- pay-later (BNPL) solutions, earned wage access (EWA) products, and digital asset payment ser - vices. These innovations are not only transform - ing the customer experience but also attracting the attention of regulators at federal and state levels. As 2025 unfolds, the Trump administration’s deregulatory stance introduces potential shifts in federal regulatory priorities. While these efforts aim to reduce compliance burdens and foster innovation, they may create gaps in federal oversight, prompting state regulators to play a more prominent role. For fintech companies, this dynamic presents both opportunities and chal - lenges, as they navigate the complexities of a
multi-layered and sometimes fragmented regu - latory framework while continuing to innovate. Uncertainty Looms Over CFPB and Its Prior Fintech Initiatives The Consumer Financial Protection Bureau (CFPB) was notably active throughout 2024 and early 2025 under the Biden administration. Areas of focus for the prior administration included con - sumer data and privacy protections, supervising larger technology companies (coined “Big Tech” ) that play a role in the payments eco-system, and junk fees. However, with the new administration and its expected deregulatory stance, coupled with the Republicans’ overall interest in reining in the authority of the CFPB (or even eliminat - ing the agency altogether), it is unclear which areas the CFPB will focus on going forward, if any. Since taking office in February 2025, the CFPB’s acting director has ordered a sweeping halt to the agency’s activities, suspending rule - making, enforcement actions and stakeholder engagement, while also cancelling the CFPB’s next funding request from the Federal Reserve, effectively freezing most of its operations. The abrupt halt to CFPB work leaves many of the agency’s actions impacting the fintech sector in question, including the following recent actions.
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