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