U.S. Reps. Patrick McHenry (R-NC) and Mike Flood (R-NE) are leasing an effort in the House to have the comment period extended for a proposed rule by the Consumer Financial Protection Bureau (CFPB).
The lawmakers sent a letter to CFPB Director Rohit Chopra requesting an extension of the comment period for the proposed rulemaking entitled, “Defining Larger Participants of a Market for General-Use Digital Consumer Payment Applications.”
The rule seeks to define a market for general-use digital consumer payment applications. It would cover providers of funds transfer and wallet functionalities through digital applications for consumers’ general use in making payments to other persons for personal, family, or household purposes. Larger participants of this market would be subject to the CFPB’s supervisory authority under the Consumer Financial Protection Act (CFPA).
The lawmakers said that while 17 market participants would be affected by this rule, the bureau fails to identify which firms comprise that number. They also would like to better understand the extent of the rulemaking’s scope.
“Innovation is the driving engine of the American economy and the proposed rulemaking’s broad scope will have significant consequences on the ability for nonbank firms to offer innovative products and services and for consumers to benefit from competition in the market,” the Congress members wrote. “Given the breadth of the proposal and ambiguity regarding its applicability, we urge the Bureau to extend the comment period for an additional 30 days. This additional time will give market participants the opportunity to provide comprehensive feedback.”
In addition to McHenry, chair of the House Financial Services Committee, and Flood, 18 other House colleagues signed the letter.