Could Trump’s comeback be the regulatory reset the EWA industry has been waiting for?

Trump’s back for round two, and the shake-ups are already in full swing — politically and financially. His ‘out with the old, in with the new’ mantra extends beyond policies; it’s also about clearing out the old guard and putting fresh faces in charge of government departments.

While his deregulation stance could create a more welcoming regulatory environment for the banking and crypto industries, it also brings potential risks. A regulatory rollback could rattle banking stability and slow fintech-bank collaborations.

But for the earned wage access (EWA) sector, the new administration is expected to bring clarity, ending the uncertainty that kept providers on edge.

The landscape and ongoing tug: As new payment models like Buy Now, Pay Later (BNPL)  and EWA took off in recent years, the Consumer Financial Protection Bureau (CFPB) has been watching how they affect consumers. The main debate around EWA, however, remains and revolves around one big question: Is it your earned money delivered ahead of payday or a loan in disguise?

In July 2024, the Consumer Financial Protection Bureau issued an interpretive rule stating that many paycheck advance products — often branded as “earned wage” offerings — are considered consumer loans under the Truth in Lending Act (TILA). As a result, federal and state regulators have been locked in that argument, with different states opting for individual, fragmented regulatory routes.

States such as Kansas, Missouri, and Nevada require EWA providers to register their companies and categorize wage advances as distinct products — steering clear of classifying them as loans. On the other hand, California and Connecticut took a different approach, treating wage advances as loans.

EWA providers like Payactiv, DailyPay, and EarnIn support state regulations similar to those in Kansas and Nevada. It was EarnIn, based in California, that challenged the state’s regulation in 2023, arguing it could force companies to change their models and limit options for customers living paycheck to paycheck.

Conversely, some EWA providers, like the New York-based Clair, argue that EWA falls squarely within lending rules.

“We agree with California legislators that EWA is a loan and lending regulations should apply. If you’re paying some amount every time you advance funds, isn’t that similar to interest payments?” Nico Simko, the CEO and co-founder of Clair asked during our interview in 2023.

The winds of change in 2025: Consumer advocacy groups as well as trade associations like the Financial Technology Association (FTA) have repeatedly challenged the CFPB’s interpretive rule leading to the blanket classification of EWA products as loans. The organization calls for shaping policy through legislative discussions rather than regulatory mandates.

The FTA supports the Congress-introduced bill H.R. 7428 in 2024, which classifies EWA as a non-credit product with consumer protections. This bill mirrors bipartisan regulations in Nevada, Missouri, Wisconsin, South Carolina, and Kansas.

The American Fintech Council (AFC), representing key EWA providers such as DailyPay, Earnin, Dave, and Payactiv, is also one of the strongest advocates for this bill. 

In a recent turn of events, Rohit Chopra, appointed CFPB Director by Biden in 2021, was ousted by President Trump on February 1, also ending his term on the FDIC board. While his successor hasn’t been appointed yet, there’s speculation that the new director could be more inclined to treat EWA as a distinct financial product, especially within a more accommodating regulatory environment Trump is creating for banks.

While the new administration can’t likely disband the CFPB without Congress’ consent, it could alter its “focus on different things, or take out all its teeth,” said John Diamond, director of the Center for Public Finance at Rice University’s Baker Institute.

With the 119th Congress in its current term and Trump at the helm, key bills like the Earned Wage Access Consumer Protection Act, the True Lender Legislation, and the Fair Exams Act are up for debate.

I spoke with Phil Goldfeder, CEO of the American Fintech Council, whose nearly 20 years of financial services and public policy experience informs his views on the draft bill and its possible effects on EWA providers and consumers if signed into law.

The EWA Consumer Protection Act: The expectations ahead

Goldfeder sees the Earned Wage Access Consumer Protection Act as a chance to create a regulatory framework designed specifically for EWA, instead of forcing it into existing categories. 

“When we talk about EWA, it’s important to recognize the context behind this tool, and why it is so important,” Goldfeder says.

“Responsible EWA helps to reconnect work and reward by allowing workers to access wages between pay periods, breaking the arbitrary pay period cycle,” he says. “This technology and service is completely different from a traditional loan.”


The significance of this law crossing the finish line — and what it means for both providers and consumers: “Absolutely! This legislation provides much-needed clarity by specifying that EWA products are not considered loans under the TILA, and should not be regulated as such,” asserts Goldfeder. 

By codifying the classification in federal law, the bill could establish the distinction between EWA services and loans for providers and offer legal safeguards to consumers, allowing them to access their earned wages.

“This will further enhance consumer confidence in EWA products and encourage broader adoption of a tool that helps break the age-old cycle of arbitrary pay periods and gives workers greater control over their own pay,” Goldfeder notes.

Goldfeder further explains that classifying EWA as a loan under TILA or creating a patchwork of state rules could lead to added fees, interest, and impacts on credit reports for workers using the tool.

“None of these would add any protections for EWA users, but all would make it harder to access this financial tool,” he notes.

This could, in turn, impact workers trying to manage unexpected expenses or improve their financial stability.

“Enacting this legislation could help formalize responsible industry standards, fostering greater consistency, trust, and consumer protection industry-wide while ensuring all providers meet the same high bar for accountability,” Goldfeder says.

The path ahead with the new government in charge: Goldfeder notes that the engagement with Congress on EWA and the push for clearer regulations has been positive.

“We expect to see bipartisan efforts to advance pragmatic legislation like the Earned Wage Access Consumer Protection Act that ensures consumers are protected while preserving their access to critical financial tools,” he says.