Today, the Consumer Financial Protection Bureau (CFPB) finalized a controversial rule to bring a range of nonbank companies under formal federal supervision. The so-called ‘larger participant’ rule will require digital payment platforms and wallets to comply with supervisory regulations typically reserved for large banks and credit unions.

“This rule is a parting salvo from CFPB Director Rohit Chopra, whose tenure has often been marked by overreach and a fixation on targeting critical financial tools that consumers rely on,” said Chamber of Progress Director of Financial Policy Kyle Bligen. “The CFPB’s move disregards the key reason consumers value fintech solutions, which is that they’re more convenient and efficient than traditional banks. This rule is unlikely to withstand legal challenges or the impending administration change.”

Last year, Chamber of Progress expressed concerns that the rule would backfire on CFPB regulators by giving Wall Street a leg up over fintech tools, which offer consumers a more accessible alternative to big banks. 

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Chamber of Progress (progresschamber.org) is a center-left tech industry policy coalition promoting technology’s progressive future.  We work to ensure that all Americans benefit from technological leaps, and that the tech industry operates responsibly and fairly.  

Our corporate partners do not have a vote on or veto over our positions. We do not speak for individual partner companies and remain true to our stated principles even when our partners disagree.