The Consumer Financial Protection Bureau declared that it would enforce the law against “non-bank entities that pose a risk to consumers.” The rule will protect consumers and “balance the playing field between banks and non-banks” in the crypto sector. It’s part of the Dodd-Frank Act, and it’ll essentially give the CFPB the power to examine crypto businesses and the risks they pose. The CFPB, much like a bank, can go after any crypto business that it deems is endangering consumer protection.
According to CFPB Director Rohit Chopra, the goal is to nip any threats in the bud. In light of non-banks fast expansion of consumer offerings, the CFPB is now using old rules to bring non-banks to the same standards as traditional banks. He stated that “this old rule allows us to move as swiftly as the market, allowing us to examine financial institutions that pose a risk to consumers and stop harm before it spreads.”
Consumer Bureau seeks public feedback
The Consumer Financial Protection Bureau has also requested public input on the rule. CFPB officials want public advice and are giving a chance to everyone who could be affected by it to react. The ruling increases the number of regulatory agencies working on crypto regulation in the United States. Officials have discussed the necessity for multiple organisations to collaborate in order to regulate the cryptocurrency market, and this process has been progressing in recent months.
According to the IMF, DeFi poses a risk to financial markets, so expect some regulation in the near future. Stablecoins, which are also a subject of concern for several other countries, are among the highest priorities for the US government. They can coexist with a central bank’s digital money, according to the Federal Reserve Chair, but authorities will undoubtedly exert some control over them.
The crypto market will be affected by developments in the United States, whether for the better or for the worse, with DeFi shaping up to be one of the most important things to ponder.
 aims to use old law provision to expand its authority over crypto and fintech companies.){kind=link}