Congress weighs crypto payments and fintech lending in hearing today

In a hearing on Tuesday, the Congressional Fintech Task Force heard arguments on new rules that would potentially expand banking regulations to accommodate more technology firms providing financial services.

Lynch, for one, noted that "One of the great promises of fintech was the idea that it might help us to bank the unbanked. The evidence is really mixed."

"We are especially concerned by dominant tech platforms' recent encroachment into payments, most notably the proposed Facebook Libra project," said Carrillo.

"The current rules under SBA and others have been made to be a form of risk management. While we respect them, there needs to be some type of review so that the good guys aren't fighting their fight with one hand tied behind their backs." More optimism for crypto as a payment operator.

Part of the occasion for the hearing is proposed changes to payments charters from the Office of the Comptroller of the Currency, the U.S.'s regulator for federal banks.

The office has been extremely active in extending fintech and crypto engagement in traditional finance.

The hearing was called "License to Bank: Examining the Legal Framework Governing Who Can Lend and Process Payments in the Fintech Age." Many noted the particular role of crypto in the evolution of payments.

"We also believe lending and payments each require a significant adjustment in regulation, and we would suggest the OCC focus on payments first as new technology entrants like Bitcoin, blockchain and cryptocurrency gain traction."

Representative French Hill was even more direct, ending his time with the declaration that "We need a cryptocurrency payment rail as part of our current payment system reforms."

As Brian Brooks, Acting Head of the OCC, has previously noted, the office's authority in payments predates its authority in banks, but the new push for a federal payments charter is facing pushback.