America’s Credit Unions supports the bureau’s proposed rule to place “larger participants” digital payments providers under its supervisory authority America’s Credit Unions told a House subcommittee on Wednesday. America’s Credit Unions submitted comments in conjunction with a House Financial Services Digital Assets Subcommittee hearing on the proposal.
“Our members do not want to discourage innovation but want to ensure that innovation does not allow new entrants to end run regulation,” wrote America’s Credit Unions President/CEO Jim Nussle. “As the preamble to the proposed rule acknowledges, nonbanks have engaged in regulatory arbitrage and purposely constructed their product and service offerings to use partnerships to circumvent crucial consumer protection laws—creating different levels of consumer protection based on the type of entity offering a product or service.”
America’s Credit Unions also filed comments on the proposal in January urging the CFPB to go a step further and consider the potential benefits of examination and supervision of nonbank covered persons, regardless of size.
