Statement for the Record before the House Committee on Financial Services on the hearing, "The Future of Payments: Promoting Innovation and Fair Markets"

The American Bankers Association (ABA) appreciates the opportunity to submit this Statement for the Record for the hearing entitled "The Future of Payments: Promoting Innovation and Fair Markets." American Bankers Association is the voice of the nation’s $26.1 trillion banking industry, which is composed of small, regional and large banks that together employ over 2 million people, safeguard $20.5 trillion in deposits and extend $13.7 trillion in loans.

The U.S. payments system is among the most innovative, efficient, and resilient in the world. Consumers and businesses today benefit from a wide range of payment options, including instant payments, digital wallets, card networks, and emerging tokenized forms of money, many of which have been developed and deployed by banks operating within a strong regulatory framework. Banks are actively modernizing payments infrastructure, connecting to real-time fiat rails, investing in distributed ledger technologies, and exploring new models such as tokenized deposits and other digital assets, all while maintaining robust risk management, consumer protection, and compliance standards.

ABA and our members support continued innovation in payments. At the same time, we believe that efforts to expand access to payment system infrastructure and create new chartering pathways must reinforce the core strengths of the U.S. financial system – its safety, soundness, and trust – rather than weaken them.

As policymakers consider legislation and regulatory proposals related to payment system access, including new chartering models and Federal Reserve account access, ABA offers the following principles.

Download the statement for the record to read the full text.