Republican Leadership Urges CFPB to Reconsider Proposed Rule on Digital Assets
Republican leaders in the House Financial Services Committee have expressed concerns about a proposed rule from the Consumer Financial Protection Bureau (CFPB) and have called on the agency to provide more clarity. The rule, known as the ‘Defining Larger Participants of a Market for General-Use Digital Consumer Payment Applications,’ does not specify if it applies to specific digital asset entities, according to a letter written by Committee Chair Patrick McHenry and Representatives French Hill and Mike Flood. The lawmakers have urged the CFPB to justify the need for the rule and consider its potential impact before finalizing it.
Industry Pushback Against the Proposed Rule
The Crypto Council for Innovation (CCI) has also criticized the CFPB’s proposed rule, stating that it could lead to increased regulatory fragmentation. CCI argued that the rule goes beyond existing state and federal frameworks for regulating digital assets. Peter Van Valkenburgh, director of research at Coin Center, raised concerns about the inclusion of developers and publishers of crypto software under the proposed rule, arguing that it could impede constitutionally protected speech.
Hot Take: Uncertainty Surrounds CFPB’s Proposed Rule on Digital Assets
The CFPB’s proposed rule on digital assets has faced significant opposition from Republican leaders and industry stakeholders. Critics argue that the rule lacks clarity and justification for its implementation. Concerns have been raised about its potential impact on digital asset exchanges and software developers. As discussions continue, it remains uncertain how the CFPB will address these concerns and whether any revisions will be made to the proposed rule.
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