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CFPB Warns of Dangers Related to Nonbanks Managing Payments and Issuing Stablecoins Outside of the Banking System
October 19, 2023On October 6, 2023, Rohit Chopra, the Director of the Consumer Financial Protection Bureau (“CFPB”), gave a speech at the Brookings Institute’s “Payments in a Digital Century” event. In his prepared remarks, Chopra frankly addressed concerns regarding technology companies and other nonbanks getting involved in the creation and issuance of stablecoins and blurring “the lines between payments and commerce [in such a way that it] creates the incentives for excessive surveillance [of consumers and their spending habits] and even financial censorship.” He ended his speech by announcing that the CFPB will issue a proposed rule later this October regarding personal financial data rights.
