United States of America: Announced CFPB proposal for a rule on defining larger participants of a market for general-use digital consumer payment

On 7 November 2023, the Consumer Financial Protection Bureau (CFPB) announced a proposal for a rule on defining larger participants of a market for general-use digital consumer payment. The proposed rule requires non-bank financial companies, including large technological firms and providers of digital wallets and payment applications, to follow the same regulatory standards as large banks, credit unions and other financial institutions overseen by the CFPB. The proposed rule would mandate that these companies, offering “general-use digital consumer payment applications,” comply with existing laws on fund transfers, privacy, and consumer protection. This includes adhering to protections against unfair, deceptive, and abusive acts and practices, upholding consumer rights for money transfers, and respecting privacy rights. The rule intends to facilitate equal consumer financial protection across digital and traditional financial institutions.