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CFPB proposes rule to supervise tech companies in crypto world

In this special crossover episode with Payments Pros and The Crypto Exchange, Ethan Ostroff, James Kim, and Carlin McCrory delve into the Consumer Financial Protection Bureau’s (CFPB) proposed rule to supervise large tech companies and providers of digital wallets and payment apps. The rule aims to assert authority over digital assets, categorizing them as “funds” under existing financial laws.

The team scrutinizes the legal foundation of the CFPB’s claim, highlighting potential conflicts and gaps in statutory authority. They emphasize the ongoing legislative efforts in Congress related to digital assets and caution against premature regulatory actions that could stifle innovation.

Moreover, the group addresses practical challenges faced by companies, such as the ambiguous status of non-fungible tokens (NFTs) and the complexities of monitoring blockchain transactions.

With the final rule expected by year-end and examinations slated to commence in 2025, businesses operating in the digital asset space must prepare for increased scrutiny and compliance requirements. As regulatory landscapes continue to evolve, the intersection of technology and financial services presents both opportunities and challenges for industry stakeholders and consumers alike.

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