United States of America: Consumer Financial Protection Bureau opened a consultation on proposed interpretive rule on the applicability of the Electronic Fund Transfer Act

On 10 January 2025, the Consumer Financial Protection Bureau (CFPB) opened a consultation on its proposed interpretative rule that clarifies the application of the Electronic Fund Transfer Act (EFTA) and associated Regulation E to emerging payment mechanisms, including stablecoins and digital accounts. The consultation closes on 31 March 2025. The proposal aims to ensure consistency in how these laws are applied to electronic fund transfers (EFTs) conducted through accounts established primarily for personal, family, or household purposes. The interpretive rule addresses definitions under EFTA, including “financial institution,” “funds,” and “account,” emphasising that these terms cover a broad range of assets and account types, including digital wallets, virtual currencies, and prepaid accounts. The rule also reaffirms consumer protections under EFTA and Regulation E, such as limits on liability for unauthorised transactions, error resolution rights, and disclosure requirements for EFT services.