CFPB Proposes Regulation of Big Tech's Consumer Payment Platforms

The rule, targeting platforms with over 5 million transactions per year, aims to subject nonbank companies to the same supervisory processes as banks.

• The Consumer Financial Protection Bureau (CFPB) has proposed a rule to regulate nonbank companies operating consumer payment platforms, such as Apple, Google, PayPal, Block, Meta, Amazon, and Zelle.
• The rule aims to subject these companies to the same supervisory examination processes as banks, specifically targeting those platforms with more than 5 million transactions per year.
• The rulemaking process is expected to continue into 2024, with the CFPB accepting public comments until early January.
• The proposal has been met with criticism from Republicans and tech industry groups, but has also garnered support from progressives and the traditional banking industry.
• Despite the proposed regulation, the lack of new authority from Congress could make these rules more legally vulnerable.

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