PANews reported on January 10 that according to the Financial Times, the U.S. Consumer Financial Protection Bureau (CFPB) proposed to subject digital wallets to the same protection standards as bank accounts, requiring service providers to compensate customers when hacker attacks or unauthorized transactions result in loss of customer funds.
The CFPB plans to expand the scope of the Electronic Funds Transfer Act to include stablecoins and other digital assets, emphasizing that "any assets used like currency" will be protected. The CFPB hopes to strengthen consumer protection through this rule while setting higher compliance standards for the cryptocurrency industry.
The rule change could have a significant impact on U.S. companies that hold customer crypto assets, such as exchanges and custodians, because these businesses need to maintain sufficient reserves to cover potential losses. The CFPB said it would focus on virtual currency wallets used to purchase goods or services, as well as video game virtual item accounts and credit card reward points accounts.
The CFPB is seeking industry input until March 31 before deciding whether to issue a final rule.
