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    The US Consumer Bureau dusts off old rules to tackle cryptocurrency risk

    The US Consumer Financial Protection Bureau (CFPB) is using a mostly inactive regulatory provision to gain control over cryptocurrency and fintech companies. The Consumer Financial Protection Bureau (CFPB) said that it will enforce the regulation against “non-bank entities that pose a risk to consumers.”

    The restrictions would assist safeguard customers and “balance the playing field between banks and non-banks” in the crypto sector. This is covered by the Dodd-Frank Act, and it effectively gives the authority the power to examine crypto businesses and the dangers they represent.

    The danger is high because the CFPB, like a bank, may go after any crypto company that it deems threatens consumer protection.

    The goal, according to CFPB Director Rohit Chopra, is to remove any risk from the start. “In light of non-banks’ fast expansion of consumer products, the CFPB is now adopting a passive authorisation to hold non-banks to the same standards as banks.” As a result of this authorisation, we are able to grow as a market. This allows us to go forward with greater agility, allowing us to assess financial institutions that pose a danger to consumers and intervene before harm spreads,” he added.

    The Consumer Bureau is looking for public comments.

    The Consumer Financial Protection Bureau (CFPB) has also requested public input on this regulation. It requests this information and gives any impacted parties a chance to reply.

    The ruling increases the number of regulatory agencies working on crypto regulation in the United States. Officials have spoken about the necessity for various organisations to collaborate in order to regulate the crypto market, and this process has been progressing in recent months.

    The US government places a high priority on currency stability, which is also a concern for many other countries. They can survive with a central bank digital currency, according to the chairman of the Federal Reserve, but there is little question that the authorities will impose some control over them.

    The crypto market is facing some downside as a result of developments in the United States, whether for the better or for the worse, making DeFi one of the most important things to address. According to the IMF, DeFi poses a risk to financial markets, so expect some regulation in the near future.

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