CFPB to Regulate Big Tech Digital Wallets Like Banks, Excluding Crypto

Nov 21, 2024, 02:02 PM

On November 21, 2024, the US Consumer Financial Protection Bureau (CFPB) finalized the 'Larger Participant Rule' to supervise big tech companies offering digital wallets and payment apps, such as Apple Pay, Google Pay, Cash App, PayPal, Venmo, Zelle, Amazon, and Square. This move brings these companies, which process over 13 billion financial transactions annually, under regulatory oversight similar to banks. CFPB Director Rohit Chopra stated, 'Today, the CFPB finalized a rule to strengthen oversight over Big Tech and other major payment apps.' The rule aims to ensure consumer protection and financial stability in the rapidly growing digital payments sector. Notably, the CFPB decided to exclude crypto wallets from this oversight, a decision seen as a significant development for the cryptocurrency industry.