CoinDesk Managing Editor of Global Policy and Regulation Nikhilesh De explains what a new proposal published by the U.S. Consumer Financial Protection Bureau (CFPB) could mean for large nonbank payment providers, like PayPal or Jack Dorsey's Block.
So this is a proposal from the CFP B yesterday, basically, uh trying to treat non-bank uh payment providers uh app providers, for example, uh similarly to banks is, you know, kind of how the uh document that describes it. So basically putting uh making sure that you have the same rules kind of applying to I, you know, it didn't name them, but a footnote suggested companies like paypal with Venmo uh block with the cash app uh companies like that, making sure that they're operating under the same kind of, you know, general oversight rules that you might see large financial institutions and banks uh operating under. And um you know, as part of that, they were kind of defining, you know, how they're looking at these. So what they're doing is creating this kind of definition of a consumer payment uh that would include, you know, payments within households to other people uh strictly, you know, not necessarily things that are meant for commercial purposes. So, uh you know, I think, for example, um you know, if I'm buying a pizza and I'm using Venmo to pay someone back for it, that seems to be the kind of transaction that might be covered, some of transactions therefore might get caught up in that under just how they're defining the terms.