Digital wallets vs Regulation

Who said regulation is boring? Regulation of the consumer finance regulator in the US is taking so many twists and turns that a weekly soap opera would struggle to keep up. The CFPB is now planning to drop its proposed regulation of both BNPL and digital wallets. In October the tech and fintech lobby group Financial Technology Association filed a case against the CFPB challenging proposed new rules and the CFPB and FTA have now announced a stay on the case. Now a judge has stepped in to slow down the dismantling of the agency. "A federal judge on Friday blocked the Trump administration from effectively dismantling the Consumer Financial Protection Bureau (CFPB), an early target of Elon Musk and the Department of Government Efficiency (DOGE)," reports The Hill. "U.S. District Judge Amy Berman Jackson barred the administration from stopping work and firing employees at the CFPB and ordered the reinstatement of previously terminated workers. She also blocked the destruction of any CFPB records and ordered the recission of any 'wholesale' contract cancellations issued on or after Feb. 11." Meanwhile the FDIC announced that banks can go ahead and engage in crypto activity without seeking prior approval. "The Federal Deposit Insurance Corporation announced Friday that banks can engage in legally permitted activities, including those that involve cryptocurrency, without receiving prior regulatory approval and so long as they manage their risks appropriately," reports Reuters. "The FDIC is turning the page on the flawed approach of the past three years," said acting FDIC Chairman Travis Hill in a statement, adding there will be additional moves in the future to clarify banks' engagement with crypto products and services. The FDIC's move comes after another bank regulator, the Office of the Comptroller of the Currency, similarly moved to clear the way for banks to move into the crypto sector." It follows promises by the Trump administration to make the US the world capital of cryptocurrencies.