Blockchain Association Advocates For Clarity In CFPB’s Crypto Regulatory Proposal
The Consumer Financial Protection Bureau (CFPB) faces criticism from the Blockchain Association for its recent proposal seeking oversight of digital consumer payment applications and certain crypto transactions.
The Association contends that the proposal, aiming to bring apps like Venmo and digital asset platforms under bank-like regulatory scrutiny, is overly broad and lacks the necessary analysis. They argue that the CFPB cannot assume authority over digital assets without additional rulemaking, given the unclear definition of “funds” in the Consumer Financial Protection Act (CFPA). The Association calls for a separate rulemaking process under the Administrative Procedure Act, emphasizing the need for public engagement.
Additional concerns include questioning the proposal’s scope, recommending a focus on fiat currency transactions, and critiquing the arbitrary threshold of 5 million transactions for regulatory inclusion. The Blockchain Association urges a detailed cost-benefit analysis and highlights the proposal’s deficiencies under APA standards, emphasizing the risk of it being “arbitrary and capricious.” In conclusion, the Association’s Head of Legal, Marisa Coppel, urges the CFPB to recognize the implications and deficiencies of the proposal in relation to digital assets.
Clever Robot News Desk 11th January 2024
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