Putting the millions of Americans who use digital payments systems at risk of fraud, the Republican-led House Financial Services Committee (HFSC) is taking up a resolution to block the Consumer Financial Protection Bureau’s (CFPB) “larger participant 1 rule 2 ” aimed to prevent Big Tech firms like PayPal, Venmo, Cash App, Apple Wallet, and Elon Musk’s X-Money from taking advantage of consumers.
If they are successful like Senate Republicans last week 3 , the CFPB will be unable to hold Big Tech companies accountable to the same federal laws as large banks, credit unions, and other financial institutions.
“This is a gift to Big Tech and likely the personal finances of Trump and Musk themselves. These companies process over 13 billion transactions a year, millions of Americans are relying on them for safe, and secure payments. Allowing companies like Apple, PayPal, and X-Money to avoid federal laws creates a blindspot for rampant financial abuse and fraud.”
Accountable.US Executive Director Tony Carrk
Earlier this month, new findings 4 from Accountable.US revealed that President Trump and Elon Musk’s attacks against the CFPB open the door for both to further enrich themselves and their own business ventures into digital payment systems at the expense of millions of Americans. Late last year, Trump Media & Technology Group filed a trademark to create a broad financial services platform Truth.Fi. The new initiative would be subject to a separate proposed interpretative rule 5 by the CFPB seeking to expand the definition of “funds” regulated under the Electronic Fund Transfer Act (EFTA) to digital wallets and cryptocurrency payment platforms.
Both companies could potentially be subject 6 to CFPB oversight under the Republican-blocked “larger participant” rule.
This content originally appeared on Common Dreams 7 and was authored by Newswire Editor.