New CFPB rulemaking makes no distinction between custodial and self-custody walletsThey are completely different products with different risks and covering self-custody is beyond statutory authority and unconstitutional.
Today the CFPB released a new notice of proposed rulemaking (NPRM) on “Electronic Fund Transfers Through Accounts Established Primarily for Personal, Family, or Household Purposes Using Emerging Payment Mechanisms.” In it, they call for a reinterpretation of the Electronic Funds Transfer Act (EFTA) to apply to cryptocurrency activities, but they fail to differentiate between cryptocurrency services provided by trusted intermediaries, which may rightly be subject to ongoing consumer protection requirements, and software tools used to secure one’s own crypto, which are protected speech and should never be subject to a permission-based regulatory regime.
Original post can be found at: https://www.coincenter.org/new-cfpb-rulemaking-makes-no-distinction-between-custodial-and-self-custody-wallets/