WASHINGTON, D.C.— Brady Williams, Legal Counsel, issued the following statement on the deadline for submitting comments on the CFPB’s proposed interpretive rule on how the Electronic Fund Transfer Act (EFTA) and Regulation E would apply to new and emerging digital payment mechanisms. The proposal is now on hold because the Trump administration shut down virtually all rulemaking at the CFPB:
“For too long, Big Tech payment platforms have operated in a regulatory gray zone while everyday consumers have been left holding the bag when something goes wrong. That’s why earlier this year, the CFPB proposed an interpretive rule that would affirm that consumers who use modern digital payment mechanisms—whether through a tech company’s proprietary wallet, a gaming platform’s virtual currency system, or even a stablecoin—are entitled to the same core protections as those using traditional bank accounts. These include robust safeguards against unauthorized transactions, transparent disclosures, and effective error resolution. Now, this vital rule is doomed because the Trump administration is siding with Big Tech over Main Street.
“The CFPB’s proposal was a long-overdue step toward treating digital dollars with the same safeguards as traditional bank transfers. The rule sent a clear message that innovation cannot come at the expense of consumer rights. Whether you’re sending dollars through a fintech app or using digital credits in an online game, your money deserves protection. This is what modern consumer protection looks like.
“Today marks the deadline for the public to submit comments on the proposal, but that date now bears little meaning. Unfortunately, this proposal is now on hold because the Trump administration has shut down almost all rulemaking and enforcement activity at the CFPB. So, instead of submitting comments on a valuable consumer protection proposal, we highlight this example of the real and ongoing damage being done by the shuttering of the CFPB. The Administration’s attack on the CFPB means, for now at least, no more safeguards and no more accountability for the financial predators, from brand-name banks to payday lenders who prey on hardworking Americans every day. The administration took this misguided action notwithstanding a mountain of evidence showing that the CFPB has served as one of the most effective consumer protection agencies in the history of financial regulation. Through its rules and enforcement actions, the CFPB has shielded consumers from all sorts of predatory and abusive financial practices and recovered over $20 billion dollars for the benefit of victims.
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Better Markets is a non-profit, non-partisan, and independent organization founded to promote the public interest in the financial markets, support the financial reform of Wall Street and make our financial system work for all Americans again. Better Markets works with allies—including many in finance—to promote pro-market, pro-business and pro-growth policies that help build a stronger, safer financial system that protects and promotes Americans’ jobs, savings, retirements and more. To learn more, visit www.bettermarkets.org.
