Tech industry groups, NetChoice and TechNet, have initiated a lawsuit against the Consumer Financial Protection Bureau (CFPB) regarding a new regulation on payment apps, claiming it exceeds the agency’s legal authority.
The CFPB’s proposed rule applies to digital wallets processing over 50 million transactions annually, purportedly to protect against fraud. Critics claim it may hinder innovation and raise costs for users.
CFPB Director Rohit Chopra has reiterated the need for consumer protection as digital payments become more integral to daily commerce. The outcome of this case could significantly influence regulations in the tech finance sector.