CFPB Targets Tech with Crypto Asset Regulation
The Consumer Financial Protection Bureau (CFPB) has unveiled a proposal to expand its regulatory reach to include major non-bank digital wallet and app providers. This move aligns with the agency’s increased focus on sectors such as consumer reporting and automobile financing. Hence, companies handling over 5 million transactions annually could soon be under closer scrutiny.
CFPB to Enforce Crypto Asset Regulations
The CFPB has raised concerns about the risks consumers face as technological advancements blur the lines between traditional banking and payment services. Consequently, entities like PayPal, Apple, and Google may change their operational landscape as the agency seeks to impose stricter regulations. Moreover, with the proposed changes, “funds” would encapsulate crypto assets, bringing them within the agency’s purview for retail transactions.
The lack of consumer protections in the digital app space, such as deposit insurance, has prompted the CFPB to act. Additionally, the agency aims to close gaps, allowing regulatory arbitrage and ensuring that Big Tech firms adhere to similar standards as traditional financial institutions.
New CFPB Rule Excludes Fiat Crypto
This proposed rule comes after months of groundwork laid by the CFPB, including public warnings about the lack of deposit insurance for mobile payment apps and vocal criticisms of Big Tech’s role in the payments system by CFPB Director Rohit Chopra. Moreover, the rule targets retail crypto transactions, excluding the purchase or sale of crypto with fiat currencies and the exchange between different crypto types.
As the CFPB progresses with its proposal, large tech companies may need to prepare for an adjusted regulatory environment. This could involve significant changes in how they protect consumer data and handle transactions. Hence, the landscape of digital transactions is poised for a transformation that places consumer safety at its core.
Read Also: Federal Reserve Vice Chairman Calls for Private Stablecoin Regulation
- Breaking: Crypto Market Crashes as Trump Imposes 100% Tariff on China
- ASTER Airdrop Delayed to October 20 Amid Criticisms Over Token Allocations
- U.S. Inflation Data: BLS to Release CPI Report on October 24 Amid Government Shutdown
- Bank of America, Citigroup and Goldman Sachs Explore Issuing Stablecoins Pegged to G7 Currencies
- Breaking: Bitcoin Falls After Trump Threatens ‘Massive’ Increase in Tariffs on China
- Can $TAPZI Reach $1 In Q1 2026?
- Here’s Why XRP Price May Have a Zcash-Like Surge
- $TAPZI Price Prediction: What’s Ahead of the $TAPZI token Presale?
- Cardano Price Targets $2 as Hydra 1.0 Ignites New Era of Speed and Adoption
- Dogecoin Price Prediction as $23M Leaves Exchanges—Is the Parabolic Phase Beginning?
- Pi Network Price Collapses as Analyst Proposes Turnaround Tweaks
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
