State regulators

The state would join New York in governing the up-and-coming credit product. Industry and consumer advocacy groups say there's still room for improvement.

Retailers say the Office of the Comptroller of the Currency's move to preempt an Illinois law undermines states' powers to curb interchange fees charged in their jurisdictions and perpetuates a system that raises costs for businesses and consumers.

The National Credit Union Administration Tuesday submitted a rule to the Office of Management and Budget stating that federal law preempts state laws on interchange, blocking an Illinois statute banning the collection of swipe fees on taxes and tips.

The Consumer Financial Protection Bureau has finalized changes to Regulation B, which implements the Equal Credit Opportunity Act, to eliminate any liability for indirect discrimination by lenders. The change represents a major shift in how the agency polices lending discrimination.

Banks are pushing back on the Consumer Financial Protection Bureau's draft of a five-year strategic plan, which includes a notable pullback from supervising nonbanks.

Critics say more regs for BNPL are overkill, but proponents hope the state rule will be a framework for other states.

The bill, known as the STOP Act, was introduced by State Sen. Samra Brouk and Assemblymember Steven Raga, and proposes that any wage or cash advance be considered a loan and subject to the state's 16% civil usury law.

The Brazilian digital bank Banco Inter now has a license from the Federal Reserve Board and the state of Florida to establish a virtual "branch" in Miami.

The Consumer Financial Protection Bureau has backed off enforcement and supervision of consumer protection laws, leaving states to fill the void — and potentially creating a "patchwork" of state laws that banks will have to comply with.

The year was marked with six state regulations, new entrants, product and market expansion from existing EWA providers and buy-in from investors.

As commissioner of Virginia's Bureau of Financial Institutions since 1997, Joe Face emphasized strengthening the dual banking system.

The state is requiring merchants to accept cash denominations of $20 and under and prohibits them from charging extra to accept cash. The law, which goes into effect in March, comes as merchants are responding to the Trump administration's abrupt cancellation of penny production.

The number of states with earned wage access legislation doubled in 2025 with six states passing new laws. Connecticut regulators have been particularly strict, creating conflict between lenders and the government.

The American Fintech Council requested a 30-day extension for buy now/pay later providers to submit information about their businesses to the New York Department of Financial Services. New York is the first state to institute a law specifically regulating BNPL.

12 states have laws governing earned wage access, also known as on-demand pay, and while many follow similar general guidelines, small – yet critical – distinctions are emerging with each new regulation.

Connecticut has set strict new rules for EWA providers; Louisiana's regulation is more aligned with existing state laws.

Regulators from California, Massachusetts, Minnesota, Nebraska, New York and Texas levied the fine for anti-money-laundering and Bank Secrecy Act violations, which comes as Wise seeks a banking license in the U.S.

As the Senate stands poised to pass a landmark bill establishing rules for stablecoin issuers, a provision allowing state-chartered uninsured banks to operate in states without prior approval is drawing concern from observers and opposition from state regulators.

New York State Gov. Kathy Hochul has codified how buy now/pay later lending will operate in the state, taking a heavier hand as the Consumer Financial Protection Bureau loosens its grip under President Trump.

New York AG Letitia James is suing the earned wage access companies for charging illegal, high-interest loans that would have wide-ranging implications for EWA providers. DailyPay last week filed a countersuit against James's office.