House Debates CFPB's Proposed Rule on Digital Payments and Crypto Oversight

The proposed rule aims to regulate digital wallets and payment apps, sparking a divide between Republicans and Democrats over its scope and authority.

• House Republicans criticize the Consumer Financial Protection Bureau's (CFPB) proposed rule to regulate digital wallets and payment apps, claiming it oversteps its mandate.
• Democrats argue the regulation is crucial for consumer protection, especially with the volatile nature of cryptocurrencies.
• The rule would require nonbank financial companies handling over 5 million transactions a year to adhere to the same regulations as banks.
• Critics argue the rule's broad approach could stifle innovation and create uncertainty in the digital payments market.
• The debate also touches on whether cryptocurrencies should fall under the CFPB's oversight, with concerns over the potential for regulatory overreach.

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