The Consumer Financial Protection Bureau (CFPB), the United States' peak agency for consumer financial protection, is considering applying the Electronic Funds Transfer Act (EFTA) to crypto in an effort to protect consumers from fraudulent crypto transfers.

Speaking at a payments conference hosted by the Brookings Institution think tank on October 6, CFPB Director Rohit Chopra said his agency is considering applying EFTA to "private digital dollars and other virtual currencies."

Chopra noted that the CFPB's plans regarding crypto include providing guidance on how existing electronic funds transfer laws apply to crypto.

The agency's move comes amid a 150% annual increase in crypto platform attacks and the second week of FTX co-founder Sam Bankman-Fried's trial on charges of fraudulently using customer funds.

Chopra added that the CFPB will also issue orders to "certain major technology firms" to obtain information about their business practices around the use of personal data and private money issuance.

In addition, the agency will examine non-bank organizations that offer payment platforms.

Chopra suggested that Treasury's Financial Stability Oversight Council classify some crypto activity as "systemically important payment netting or settlement activity."

“This could, for example, provide other agencies with critical oversight and tools to ensure that a stablecoin is truly stable.”

Join the discussion by sharing your comments and thoughts with us.#crypto#regulation #CFPB