CFPB: Virtual Currency Products and Services Falls Outside of New Prepaid Rule
The Consumer Financial Protection Bureau (CFPB) has ruled that virtual currency products and services will not be regulated under the new prepaid rule.
Sent in an email, the Chamber of Digital Commerce explained the decision came after the CFPB met with many players within the virtual currency community. Along with the Chamber of Digital Commerce, the Bureau received comments from a virtual currency exchange, wallet provider, advisory groups, and banks who believed regulating virtual currencies on this matter would be too premature. Regulations like this could restrain the possible growth of virtual currencies, according to the ruling.
The Chamber states they will continue to work with and educate the CFPB and other agencies.
Read the full press release below:
CFPB Determines that Virtual Currency and Related Products and Services are Outside the Scope of Its New Prepaid Rule
On October 5, 2016, the Consumer Financial Protection Bureau (“CFPB”) released its final rule concerning prepaid accounts. The Chamber is pleased to learn that the CFPB accepted our recommendations and expressly found that the “application of Regulation E and this final rule to [virtual currency] products and services is outside the scope of this rulemaking.”
Previously, the Chamber had submitted comments to the proposed rule emphasizing that virtual currencies should not be regulated as prepaid financial products. The Chamber is encouraged that the CFPB has taken its input into account in its new rule, and looks forward to continuing to consider and develop appropriate regulation impacting virtual currencies, digital assets, and blockchain technology with the CFPB and the many other agencies that have taken an interest in the technology. We note that the CFPB said that it “continues to analyze the nature of products or services tied to virtual currencies.” Thus, we will continue to engage with the CFPB on any future initiatives.
Virtual currencies, digital assets, and blockchain technology hold significant promise to create faster, more secure, and more efficient systems in many industries and for the benefit of consumers worldwide. Regulation should be tailored to balance risk, consumer protection, and innovation for the benefit of all.
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About the Chamber of Digital Commerce
The Chamber of Digital Commerce is the world’s leading trade association dedicated to promoting the understanding, acceptance and use of digital assets and blockchain technology. Through education, advocacy, and working closely with policymakers, regulatory agencies, and industry, our goal is to develop a pro-growth legal environment that fosters innovation, jobs and investment. Headquartered in Washington, D.C., the Chamber is the founder of the Smart Contracts Alliance, the Blockchain Alliance, the Global Blockchain Forum and other key industry initiatives. For more information please visit: DigitalChamber.org, and follow us on Twitter: @ChamberDigital.