House Committee Leaders Seek More Time for Feedback on CFPB’s Crypto Proposal.
Leaders from the United States House Financial Services Committee, including the Subcommittee on Digital Assets, Financial Technology, and Inclusion, have requested an extension for public comments on a new rule proposed by the Consumer Financial Protection Bureau (CFPB). They argue that the rule’s effects on the digital asset industry are unclear.
In a letter dated January 30, Representatives Patrick McHenry, Mike Flood, and French Hill reached out to CFPB Director Rohit Chopra. They expressed concerns over a proposal from November 2023 that aims to expand the CFPB’s supervisory powers to include digital assets by defining them as “funds.” This expansion could potentially affect wallets used for digital currencies.
The lawmakers warned that the proposed rule could discourage crypto exchanges from supporting peer-to-peer transactions through self-hosted wallets, a fundamental aspect of the digital asset ecosystem that reduces third-party risks. They urged the CFPB to consider a more detailed analysis and to avoid broad definitions that could introduce regulatory uncertainties.
The Crypto Council for Innovation also voiced apprehension about the rule, fearing it might lead to more fragmented regulations in the crypto space. The group suggested that the CFPB should not expand its oversight into digital assets until Congress establishes a clear regulatory framework.
Chair of the House Financial Services Committee, McHenry, announced he would not run for re-election in January 2025. With all 435 U.S. House of Representatives seats up for election in 2024, the balance of power is highly uncertain.
