US Lawmakers Challenge CFPB’s Proposed Rule on Digital Consumer Payments
Key figures from the U.S. House Financial Services Committee, including Chairman Patrick McHenry, Subcommittee Chairman French Hill, and Representative Mike Flood, are challenging the Consumer Financial Protection Bureau (CFPB) over its proposed rule on digital consumer payment applications.
Concerned about the potential impact on the digital asset industry, the lawmakers are requesting an extension of the public comment period. In a letter to CFPB Director Rohit Chopra, dated Jan. 30, they expressed worries about the rule’s lack of justification, unclear guidance for third-party service providers, and potential unintended consequences on the digital asset ecosystem.
Criticizing the expansion of the Bureau’s regulatory reach without sufficient analysis, they also highlighted the ambiguous coverage of third-party service providers and the potential destabilization of the digital asset industry. Urging a 60-day extension for comprehensive stakeholder feedback, the representatives emphasized the importance of considering the significance of peer-to-peer transactions, particularly through “self-hosted wallets,” cautioning against broad definitions that may introduce regulatory risks.
Clever Robot News Desk 4th February 2024