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ARTICLE · 04 FEBRUARY 2025

CFPB Proposes Significant Expansion In Scope Of EFTA And Regulation E

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On January 10, 2025, the Consumer Financial Protection Bureau (CFPB or Bureau) issued a proposed interpretive rule that would expand the Bureau's consumer protection authority...

United StatesFinance and Banking
Benjamin Chapin
Benjamin Chapin
Zachary Goldman
Zachary Goldman
Franca Harris Gutierrez
Franca Harris Gutierrez
Tiffany Smith
Tiffany Smith
John C. Wells
John C. Wells
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On January 10, 2025, the Consumer Financial Protection Bureau (CFPB or Bureau) issued a proposed interpretive rule that would expand the Bureau's consumer protection authority under the Electronic Fund Transfer Act (EFTA) and its implementing regulation, Regulation E, to stablecoins, crypto, virtual currencies and other innovative forms of electronic payment, as described below.

While the Trump Administration is unlikely to finalize the proposed interpretive rule, especially given the administration's support for the development of crypto and other digital assets, the proposed rule's expansive interpretation of EFTA and Regulation E could still find purchase with civil litigants and state regulators.

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