Troutman Pepper Explores CFPB’s Proposed Rule Impacting Digital Payments
WASHINGTON – Troutman Pepper Partner James Kim recently testified before the United States House of Representatives Subcommittee on Digital Assets, Financial Technology and Inclusion about the Consumer Financial Protection Bureau’s (CFPB’s) latest proposed rule aimed at supervising larger tech companies offering “general use” digital payment applications.
Kim testified in the March 13, 2024 hearing, "Bureaucratic Overreach or Consumer Protection? Examining the CFPB’s Latest Action to Restrict Competition in Payments," addressing critical issues surrounding the CFPB’s efforts to regulate digital payments apps and wallets. Kim’s testimony focused on three areas:
- The proposed rule’s failure to follow rulemaking requirements in the Dodd-Frank Wall Street Reform and Consumer Protection Act
- The proposed rule’s risk of creating burdensome regulatory obligations that overlap with and duplicate existing supervision by federal prudential regulators and state agencies
- The proposed rule’s low transaction volume threshold
View his full testimony online here (44.43). Download a written copy of his remarks online here.
Troutman Pepper’s Financial Services Industry Group provides comprehensive support to all types of financial services businesses in today’s challenging and ever-changing environment. The team includes more than 200 attorneys who regularly advise global, national, regional, and community banks, financial technology companies, payments companies, consumer and commercial lenders, and a wide variety of other financial services businesses on the most crucial aspects of their business, from structuring major transactions to dealing with regulatory scrutiny and litigation.
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