Reg E Would Apply To Stablecoins, Gaming Assets, Credit Card Rewards Points

The Federal Consumer Financial Protection Board ("CFPB") has proposed interpretive rulemaking clarifying how consumer protections provided by the Electronic Funds Transfer Act ("EFTA") as implement by Regulation E ("Reg E")¹apply to transfers of funds and purchases using digital assets, including stablecoins, gaming assets and certain credit card rewards points ("NPR").²Seeking to provide a "consistent framework" for the applicability of Reg E to the range of emerging payment mechanisms, the CFPB expressed concerns that "consumers making electronic fund transfers using accounts established primarily for personal, family, or household purposes might face challenges in vindicating their rights in the event of unauthorized transfers and other errors ..." and that "inconsistent application of EFTA and Regulation E might put certain providers at an unfair, competitive disadvantage."³