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".
This joint resolution (S.J.Res.28) disapproves the final rule issued by the Bureau of Consumer Financial Protection (CFPB) titled “Defining Larger Participants of a Market for General-Use Digital Consumer Payment Applications.” Under the Congressional Review Act, such joint resolutions of disapproval prevent the agency rule from taking effect. The rule in question was published as final on December 10, 2024 (89 Fed. Reg. 99582). If Congress passes this resolution and it is signed into law (or overridden after a veto), the rule has no force or effect and CFPB would not implement the designation of “larger participants” for digital payment apps. In practical terms, this resolution blocks CFPB from expanding its supervisory reach to additional digital payment platforms under the “larger participants” framework, maintaining the status quo for which entities are subject to federal oversight in this market.
Key Points
- 1What the rule does: The CFPB rule defines which firms operating general-use digital consumer payment applications would be considered “larger participants,” thereby potentially expanding CFPB supervisory and regulatory reach over those firms.
- 2Legal mechanism: The resolution uses the Congressional Review Act to disapprove the rule; if enacted, the rule has no force or effect and cannot be enforced.
- 3Status and process: The measure is currently introduced in the 119th Congress; for it to become law, both chambers must pass it and it must be signed by the President (or overridden if vetoed).
- 4Policy implications: Disapproval could limit regulatory oversight of large digital payment platforms and potentially reduce regulatory burden on those platforms, but may also limit consumer protections that could come from expanded CFPB supervision.
- 5Scope of impact: Centers on the market for general-use digital payment apps (e.g., widely used digital wallets and payment platforms) and the entities CFPB could supervise under the “larger participants” construct.