State regulators

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.

The law would have expanded the state's 12% interest rate cap in a manner that would have effectively banned fintech lending in the state.

The state legislature has passed a bill that would remove exceptions to a 12% interest rate cap that would make many alternative forms of lending infeasible. It sits on the governor's desk, awaiting signature.

More state legislatures are exploring how to regulate earned wage access products, and interest rate caps are central to that discussion. New York state's pending legislation is taking a novel approach.

Amendments to New York's cyber rules — and a focus on privacy in California — mean banks must enhance risk controls, encryption and customer protections.

California's Department of Financial Protection and Innovation is requiring registration by mid-February of debt settlement firms, earned wage access providers, private secondary education financing and student debt relief services.

The memorandum creates channels for sharing information about nonbanks between the Federal Housing Finance Agency and the Conference of State Bank Supervisors.

Nearly a dozen states are looking to regulate digital payroll advance products, prompting a fintech trade group to ask the Consumer Financial Protection Bureau to conduct a formal rulemaking.