United States of America: Opened consultation on the CFPB Rule on defining larger participants of a market for general-use digital consumer payment

On 7 November 2023, the American Consumer Financial Protection Bureau (CFPB) opened a public consultation on the rule on defining larger participants of a market for general-use digital consumer payment, which aims to extend federal oversight to nonbank financial companies until 8 January 2023. The proposed rule would apply to large nonbank financial companies that offer financial services such as digital wallets and payment apps and that handle more than 5 million transactions per year. The CFPB acknowledges that nonbank financial companies have a large share in e-commerce payments and in-person retail spending and that complaints against such platforms have increased over the past years. For these reasons, the CFPB proposes to extend federal oversight to these platforms to protect consumers. Specifically, the proposed rule would demand nonbank financial companies to comply with applicable consumer financial protection laws in order to ensure consistent enforcement and promote fair competition. The stakeholders can submit comments until 8 January 2024, or 30 days after the publication in the Federal Register, whichever is later.