# Plain Language Summary: Digital Payment App Regulation Disapproval

Congress is voting to reject a new rule created by the Consumer Financial Protection Bureau (CFPB) that would regulate large companies offering digital payment apps like Venmo, PayPal, and Apple Pay. The rule would have required these large payment companies to follow certain consumer protection standards and submit to oversight by the CFPB. By passing this resolution, Congress would essentially say "no" to the CFPB's attempt to regulate these digital payment services, blocking the rule from taking effect.

The practical effect is that major digital payment app companies would not have to comply with the new CFPB regulations. This means these companies would continue operating under existing rules rather than facing new consumer protection requirements that the CFPB had proposed. The CFPB had wanted to identify which payment app companies are "large participants" in the market and then require them to follow specific regulations to protect consumers. Without this rule, there's less federal oversight of how these companies handle your payment information and conduct their business.

For everyday people, this means the digital payment apps you use—whether for splitting rent with roommates, paying friends back, or making purchases—won't face new federal restrictions on how they operate. Whether that's good or bad depends on your perspective: supporters of blocking the rule argue it prevents unnecessary government regulation of innovative financial technology, while critics worry it leaves consumers with fewer protections when using these popular payment services.

A joint resolution 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".

Ricketts, Pete

<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>