# What This Bill Does

Congress is trying to block a new rule from the Consumer Financial Protection Bureau (CFPB) that would regulate large digital payment companies. The CFPB created this rule to define which payment apps and digital services are big enough to fall under government oversight. Think of companies like PayPal, Square Cash, or other apps that let you send money to friends or make purchases online. The rule would identify which of these companies are considered "large participants" in the market and therefore subject to CFPB supervision and regulations.

If this bill passes, the CFPB's rule would be completely wiped out and wouldn't go into effect. That means the agency wouldn't be able to use this particular rule to regulate large digital payment companies. The practical effect is that these payment apps would continue operating without this specific layer of federal oversight that the CFPB had planned to implement.

The real-world impact depends on which side you're on. If you use digital payment apps, this could mean less regulatory protection for your transactions and personal financial information—the CFPB wouldn't have the authority to oversee these companies under this rule. On the flip side, payment app companies would avoid new compliance costs and regulations that the rule would have imposed. The bill essentially sides with the payment industry over consumer protection in this particular area, though other regulations would still apply to these companies through different rules and agencies.

Disapproving the rule submitted by the Bureau of Consumer Financial Protection relating to "Defining Larger Participants of a Market for General-Use Digital Consumer Payment Applications".

Flood, Mike

<p>This joint resolution nullifies the final rule issued by the Consumer Financial Protection Bureau (CFPB) titled <em>Defining Larger Participants of a Market for General-Use Digital Consumer Payment Applications</em> and published on December 10, 2024. The rule defines larger participants in the general-use digital consumer payment application market (i.e., payment apps) that are subject to&nbsp;CFPB supervisory authority. The rule defines larger participants in this market as nonbanks (1) with an annual volume of at least 50 million transactions, and (2) that are not small business concerns.</p>