Future

United

Gains

<div class="insidebitcoins">
 The Consumer Financial Protection Bureau (CFPB) wants to apply the Electronic Fund Transfer Act (EFTA) to digital assets space.
 During a speech at the Brookings payment conference on October 6, CFPB Director Rohit Chopra revealed the agency aims to safeguard investors and users in the rapidly expanding crypto ecosystem.
 &nbsp;“To reduce the harms of errors, hacks, and unauthorized transfers, the CFPB is exploring providing additional guidance to market participants to answer their questions regarding the applicability of the Electronic Fund Transfer Act for private digital dollars and other virtual currencies,” he said
 Addressing the topic, “Making America’s payment system work for a digital century,” Chopra asserted that, under the potential application of EFTA to cryptocurrencies and other virtual currencies, financial institutions and virtual asset firms may be required to make several changes. These could include disclosing liability details to users before executing electronic transactions and reducing the significant losses due to unauthorized crypto transactions in recent years.
 <figure id="attachment_446326" aria-describedby="caption-attachment-446326" style="width: 100%" class="wp-caption alignnone"><img decoding="async" class=" wp-image-446326" src="data:image/svg+xml,%3Csvg%20xmlns='//www.w3.org/2000/svg'%20viewBox='0%200%201092%20746'%3E%3C/svg%3E" alt="Director Rohit Chopra, The Consumer Financial Protection Bureau (CFPB) at the Brookings payment conference on October 6" width="1092" height="746" data-lazy-srcset="https://cdn.thebittimes.com/images/2023/10/09/59d94d9f56d43735a09d8a6a2bad29f4.webp 300w, https://cdn.thebittimes.com/images/2023/10/09/59d94d9f56d43735a09d8a6a2bad29f4.webp 1024w, https://cdn.thebittimes.com/images/2023/10/09/59d94d9f56d43735a09d8a6a2bad29f4.webp 768w, https://cdn.thebittimes.com/images/2023/10/09/59d94d9f56d43735a09d8a6a2bad29f4.webp 1110w" data-lazy-sizes="(max-width: 1092px) 100vw, 1092px" data-lazy-src="https://cdn.thebittimes.com/images/2023/10/09/59d94d9f56d43735a09d8a6a2bad29f4.webp">
 <noscript><img decoding="async" class=" wp-image-446326" src="https://cdn.thebittimes.com/images/2023/10/09/59d94d9f56d43735a09d8a6a2bad29f4.webp" alt="Director Rohit Chopra, The Consumer Financial Protection Bureau (CFPB) at the Brookings payment conference on October 6" width="1092" height="746" srcset="https://cdn.thebittimes.com/images/2023/10/09/59d94d9f56d43735a09d8a6a2bad29f4.webp 300w, https://cdn.thebittimes.com/images/2023/10/09/59d94d9f56d43735a09d8a6a2bad29f4.webp 1024w, https://cdn.thebittimes.com/images/2023/10/09/59d94d9f56d43735a09d8a6a2bad29f4.webp 768w, https://cdn.thebittimes.com/images/2023/10/09/59d94d9f56d43735a09d8a6a2bad29f4.webp 1110w" sizes="(max-width: 1092px) 100vw, 1092px">
 </noscript>
 <figcaption id="caption-attachment-446326" class="wp-caption-text">
 Director Rohit Chopra, The Consumer Financial Protection Bureau (CFPB) at the Brookings payment conference on October 6 (Source: Youtube)
 </figcaption>
 </figure>
 The EFT, enacted in 1978 under Title 15 of the United States Code, aims to safeguard the interests of individual consumers who are involved in electronic fund transfers. These include using ATMs for transfers, making payments at point-of-sale terminals, utilizing automated clearinghouse systems for transactions, engaging in telephone bill-payment plans that involve regular transfers, accessing remote banking programs, and conducting remittance transfers.
 <h2 class="p5" id="span-class-s1-rising-crypto-threats-prompt-regulatory-action-span">Rising Crypto Threats Prompt Regulatory Action</h2>
 The CFPB’s consideration of e-banking regulations for digital assets comes when the crypto industry has witnessed increased unlawful activities in the cryptocurrency sector. Incidents of cyberattacks on cryptocurrency platforms have risen, raising concerns about the security and stability of the digital asset market.
 Chopra also mentioned the agency’s intent to issue orders to certain large technology firms. These orders aim to gather information on their business practices related to using personal data and issuing private currency. The CFPB will also examine non-banks that offer payment platforms in the crypto market to ensure their safety and security.
 Chopra suggested that the Treasury’s Financial Stability Oversight Council classify some crypto activities as “systemically important payment clearing or settlement activity.” This reclassification could empower other agencies with the necessary tools to guarantee the stability of stablecoins and enhance the overall resilience of the crypto market.
 <h2 class="p5" id="span-class-s1-international-regulatory-trends-for-consumer-protection-span">International Regulatory Trends for Consumer Protection</h2>
 CFPB’s move aligns with a global trend of increased regulation in the digital asset space aimed at protecting users and investors. Countries like the UK and Canada have already introduced new regulations addressing crypto advertising and stablecoin issuance.
 The UK’s Financial Conduct Authority has mandated strict regulations on crypto advertising, ensuring that firms inform customers of risks explicitly. Some crypto exchanges and issuers have adjusted their operations to comply with the new rules.
 <blockquote class="twitter-tweet" data-width="550" data-dnt="true">
 From 8 October 2023, #crypto firms must market to UK consumers clearly, fairly and honestly, and must also provide risk warnings people understand. https://t.co/cqxj1jVtAT
 — Financial Conduct Authority (@TheFCA) September 7, 2023
 </blockquote>
 
 In Canada, the Association of Securities Regulators has rolled out a template for stablecoin issuers and has called for more comprehensive market regulation
 <h3 class="p2" id="span-class-s1-b-related-articles-b-span">Related Articles</h3>
 <ul>
 <li>Historic U.S. Crypto Bills Passed: A Leap into the Future </li>
 <li>UK’s FCA Issues “Final Warning” On New Crypto Marketing Rules, Laments Industry’s ”Lack of Engagement” </li>
 <li>Elizabeth Warren’s Bill To Crack Down On Crypto’s Illicit Use Gains Nine More Backers </li>
 </ul>
 Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/us-consumer-protection-agency-explores-applying-e-banking-laws-to-digital-asset-tbt65678.html">https://thebittimes.com/us-consumer-protection-agency-explores-applying-e-banking-laws-to-digital-asset-tbt65678.html</a>
</div>

US Consumer Protection Agency Explores Applying E-Banking Laws to Digital Asset

Table of Contents

TheBitTimes

Other articles published on Oct 9, 2023

Bitcoin’s potential to surpass Gold as a store of value

Snap Stock Price Prediction: Can SNAP Price Recover In October?

Litecoin 2023: Can LTC Price End Bear Trend & Boost Up Soon?

Astrology NFT project ‘Lucky Star Currency’ rugged for over $1m - Certik

BCH Price Faded Gains Drag To 100-Day EMA, Will Bulls Comeback?

FOMO Alert! How Crypto Whales Manipulate Short Investors – Must-Read!

Join our free newsletter for daily crypto updates!