Consumer Watchdog Seeks Input on Digital Payment Privacy and Consumer Protections
The CFPB has proposed an interpretive rule to expand Electronic Fund Transfer Act protections to digital payment mechanisms
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- Written by Banking Exchange staff

The Consumer Financial Protection Bureau (CFPB) has proposed an interpretive rule to expand Electronic Fund Transfer Act (EFTA) protections to digital payment mechanisms, such as those involving stablecoins or transactions in video games.
The EFTA regulates electronic transfers made through ATMs point-of-sale terminals and other technologies.
Among other things, the regulation gives consumers the right to dispute erroneous or fraudulent transactions.
Under the proposed interpretive rule, the CPFB would expand EFTA protections to in-game transactions in video games, esports betting and transactions involving stablecoins.
While most consumer payments are transacted using accounts connected to banks and credit unions, new payment mechanisms have emerged for consumer use.
For example, the CFPB previously published research on new forms of digital payments used in video gaming platforms, some of which have proprietary currencies that players can use to purchase and sell items and services.
The CFPB has also conducted extensive research into the digital payment offerings of Big Tech companies and popular person-to-person payment apps.
Until now, the Treasury Department and financial regulators had undertaken a multi-year effort to determine how existing law applied to stablecoins.
Unlike certain crypto assets that are designed to fluctuate in value, stablecoins are typically marketed as being pegged to the value of a sovereign currency, like the U.S. dollar.
Stablecoins are heavily used today for the purposes of trading and investment and market participants have suggested consumer use of stablecoins will likely increase in the coming years.
The CFPB’s proposed interpretive rule would ensure that consumers can consistently invoke their rights under federal law, while also assisting market participants developing these payment mechanisms.
The proposed interpretive rule would not be finalized until after President-elect Trump takes office, and it is unclear whether his administration will prioritize the issue.
The agency is requesting comment on the proposed interpretive rule, comments must be received by March 31, 2025.
Tagged under Consumer Credit, Compliance, Duties, CFPB, Feature3, Feature,
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