Senate Republicans have taken steps to repeal a recent rule by the Consumer Financial Protection Bureau (CFPB) that aimed to regulate payment apps like Venmo, PayPal, and others. Implemented in December, the rule required these platforms to establish clear processes for resolving disputes related to fraudulent transactions. Its repeal would leave users without the enforcement mechanism needed to ensure their protection under existing consumer laws. The resolution passed with support from all Senate Republicans except Josh Hawley of Missouri, who has often aligned with populist economic policies. Notably, the repeal did not require the usual 60-vote threshold, allowing it to move forward with a simple majority of 51 votes.
The CFPB rule, years in the making, applied to nonbank financial institutions handling at least 50 million transactions annually. Platforms enabling peer-to-peer transactions, such as Google Pay, Apple Pay, and Zelle, fell under its scope. Companies like Twitter, now owned by Elon Musk, and WhatsApp, under Meta’s Mark Zuckerberg, could also have been affected if they introduced similar services. Critics argue that the CFPB does not engage in ideological debanking but rather opposes such practices.
Republican Senate Majority Leader John Thune emphasized the rule’s impact on industries like crypto and digital assets, while Sen. Deb Fischer dismissed concerns about conservatives being debanked. Rep. Rick Scott expressed support for the repeal, stating it made sense to reassess regulations. Meanwhile, Sen. John Hoeven acknowledged uncertainty about potential debanking risks.
Far-right activist Laura Loomer, who has faced debanking due to her political views, criticized the move, warning it could lead to further debanking. She highlighted the influence of Big Tech monopolies in payment services. In 2021, PayPal partnered with the Anti-Defamation League to combat extremism, which some argue could lead to debanking based on political views, potentially violating non-discrimination laws. With the CFPB rule repealed, such actions may face fewer obstacles.
— news from Drop Site News