House subcommittee hears sharp divide over earned‑wage access, BNPL and consumer protection

The House Financial Services Subcommittee on Digital Assets and Financial Technology spent several hours debating whether new fintech products — notably earned‑wage access (EWA) and buy‑now‑pay‑later (BNPL) — deliver benefits to consumers or create new risks that require federal rules and enforcement.

Industry witnesses argued EWA is a distinct, noncredit product that gives workers access to pay they have already earned. Kevin Lefton, global general counsel at Stream, told the panel that EWA “is not credit, are not loans, and should not be regulated as such,” adding the product typically offers a free option and that nominal instant‑access fees are not finance charges, do not involve underwriting or collections, and do not go on credit reports. Ram Palaniyapin, founder and chief executive of Earn, described EWA as a worker‑first tool that he said increases incomes and reduces missed work, citing internal…