In November, the Consumer Financial Protection Bureau (CFPB) proposed that large nonbank payment and wallet providers be subject to the same rules as banks and credit unions. Yesterday the American Bankers Association (ABA) responded in a largely supportive letter. However, they are unhappy about the inclusion of cryptocurrencies. The Computer & Communications Industry Association (CCIA) representing BigTech is not keen.
The CFPB proposed that new rules apply only to those companies handling more than 5 million transactions annually. They would be subject to similar privacy laws as banks. And the CFPB wants to ensure “federal consumer financial protection law is enforced consistently between non-depository and depository institutions in order to promote fair competition.”
In its response, the ABA worries the focus on non banks could subject banks to even greater regulatory oversight. But one of its biggest objections is the inclusion of digital assets in an expanded definition of “funds”.
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