Chair Atkins said that the SEC is asking Congress for approval to dismantle the Strategic Hub for Innovation and Financial Technology (or “FinHub”). The elimination of FinHub, which was designed to support the agency’s oversight of not just crypto but also artificial intelligence, quantum computing, and automated investment advice, means investors will be less protected from emerging technologies.

The Federal Reserve will make the banking system and economy less safe and less stable with cuts to staffing. Fewer Federal Reserve staff to supervise banks, conduct monetary policy, and support the safe and smooth functioning of the banking system is a bad decision for all Americans. A shortage of trained and experienced bank supervisors was found to be a key cause of the 2023 bank failures. This decision will hurt the Federal Reserve and our banking system.

The SEC and FINRA withdrew staff guidance saying that broker-dealers needed to consider whether they could custody crypto assets in light of their unique risks and still comply with their obligation to safeguard customer assets. The withdrawal of the statement leaves customers unprotected from the unique risks that crypto assets pose.

The CFPB amended a prior settlement with remittance company Wise, which previously found that Wise advertised inaccurate fees and failed to properly disclose exchange rates and other costs. Although the previous settlement ordered Wise to pay approximately $450,000 to overcharged consumers and a $2.025 million fine to the CFPB’s victims relief fund, the new settlement reduces Wise’s fine from over $2 million to $44,955.

The CFPB has withdrawn without public comment its proposed rule on Prohibited Terms and Conditions in Agreements for Consumer Financial Products or Service, which would have prohibited the use of certain contractual provisions that limit expression or purport to waive substantive consumer legal rights and protections, or their remedies, under State or Federal law.

The CFPB has withdrawn without public comment its proposed interpretive rule on “Electronic Fund Transfers through Accounts Established Primarily for Personal, Family, or Household Purposes Using Emerging Payment Mechanisms,” which would have clarified that certain federal consumer protections found in the Electronic Fund Transfers Act apply to certain emerging digital payment applications, such as virtual currency wallets, credit card reward points, and video game account funds.