House Financial Services Committee Members Demand More Time to Debate New Digital Payment Proposal

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US Lawmakers Challenge CFPB Over Digital Asset Rule, Seek Extended Discussion

Leading members of the U.S. House Financial Services Committee, Chairman Patrick McHenry, Subcommittee Chairman French Hill, and Representative Mike Flood, person requested an hold of the nationalist remark play for the CFPB’s projected regularisation connected integer user outgo applications. This petition centers connected the committee’s concerns implicit the rule’s imaginable interaction connected the integer plus manufacture and its request for a much broad stakeholder review.

US Lawmakers Challenge CFPB Over Digital Asset Rule, Seek Extended Discussion

Top members of the United States House Financial Services Committee and its Subcommittee connected Digital Assets, Financial Technology and Inclusion have requested an extension of the nationalist remark play for a projected regularisation by the Consumer Financial Protection Bureau (CFPB). The rule, which aims to redefine the regulatory scenery for integer user outgo applications, has drawn scrutiny for its imaginable interaction connected the integer plus sector.

#NEW: Chairman @PatrickMcHenry, Subcommittee Chairman @RepFrenchHill, and @USRepMikeFlood sent a missive to @CFPB Director Rohit Chopra urging his bureau to revisit its larger participants integer user outgo projected rule.

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— Financial Services GOP (@FinancialCmte) January 30, 2024

In a letter dated Jan. 30, addressed to CFPB Director Rohit Chopra, Committee Chairman Patrick McHenry, on with Subcommittee Chairman French Hill and Representative Mike Flood, expressed concerns implicit the projected regularisation titled “Defining Larger Participants of a Market for General-Use Digital Consumer Payment Applications.” The lawmakers argued that the regularisation lacks capable justification, provides unclear guidance for third-party work providers, and could person unintended consequences connected the integer plus ecosystem.

The missive focused connected respective cardinal issues. Firstly, the projected regularisation was criticized for expanding the Bureau’s regulatory scope into the payments manufacture without capable justification oregon investigation of its interaction connected contention and user welfare. Secondly, the rule’s sum of third-party work providers remains ambiguous, starring to imaginable regulatory uncertainty. Lastly, the projected inclusion of integer assets wrong the scope of “funds” nether the Dodd-Frank Act was seen arsenic a determination that could destabilize the integer plus manufacture by introducing regulatory uncertainty astir integer plus transactions.

Given these concerns, the representatives urged the CFPB to reopen the remark play for an further 60 days. This extension, they argued, would let for much broad feedback from a broader scope of stakeholders earlier immoderate further enactment is taken connected the rule.

The missive besides pointed retired the value of peer-to-peer transactions successful the integer plus ecosystem, peculiarly done “self-hosted wallets.” The lawmakers cautioned that the projected rule’s wide explanation mightiness present regulatory risks to integer plus wallet providers, particularly those that bash not support ongoing relationships with consumers.

If the CFPB’s projected regularisation goes into effect, however mightiness it interaction the crypto industry? Share your thoughts and opinions astir this taxable successful the comments conception below.

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