US Consumer Protection Agency Asked to Boost Bitcoin Oversight

The Consumer Financial Protection Bureau has been asked to take a more active role in digital currency oversight.

AccessTimeIconJun 26, 2014 at 8:00 p.m. UTC
Updated Mar 6, 2023 at 2:58 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

UPDATE (27th June 19:25 BST): The full GAO report is now available and can be found here.


The US Consumer Financial Protection Bureau (CFPB), an independent federal agency tasked with policing financial products, is preparing to take its first steps toward increasing oversight of bitcoin following a request from a separate government agency.

Bloomberg reports that the Government Accountability Office (GAO), which oversees Congressional spending and policies, formally asked the CFPB to look into digital currencies earlier this year.

In a letter obtained by Bloomberg, the GAO said that it wants US consumer finance regulators be more involved in regulating digital currencies.

The CFPB later reportedly told the GAO that it would look into digital currencies in a letter dated 6th May, saying:

"We’re looking forward to increasing our involvement in formal working groups as they engage on specific issues relating to consumer protection."

It’s not clear how the CFPB would be tasked with creating new rules for bitcoin and other digital currencies, as the GAO letter did not outline recommendations for investigation. However, the CFPB's primary role in other matters is to provide educational materials and hear customer complaints.

Given this mandate, it’s likely that the agency will seek to take protective measures to reduce the risk of financial fraud and abuse in the ecosystem.

Notably, former CFPB Deputy Director Raj Date has been a vocal proponent of digital currencies, lauding the industry for its new and innovative approach to finance in April comments.

Image via CFPB

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.