According to Cointelegraph: As the cryptocurrency market continues to experience rampant growth, the US Consumer Financial Protection Bureau (CFPB) is seriously considering the application of electronic fund transfer (EFT) laws to digital currencies. The aim is to curtail the prevalence of fraudulent crypto transfers and give users a safety cushion.

The announcement was made by the director of the CFPB, Rohit Chopra, during an October 6th conference by the Brookings Institution think tank. The CFPB's consideration primarily revolves around understanding the applicability of the Electronic Fund Transfer Act (EFTA) vis-a-vis 'private digital dollars' and other virtual currencies.

"To minimize the detrimental impacts of errors, hacking, and unauthorized transfers, we're contemplating the issuance of more guidance to market players. This would help answer questions about EFTA's relevancy to private digital dollars and other virtual currencies," Chopra stated.

Introduced in 1978, the EFTA is a federal regulation devised to safeguard consumers when transferring funds via electronic modes like debit cards, ATMs, and banking transactions. Its primary focus is limiting consumer losses from unauthorized transfers. The EFTA mandates financial establishments to notify consumers before the occurrence of the maiden electronic transfer in an account, specifying if or when they may be held liable for unauthorized transfers.

This potential move by the CFPB comes in the backdrop of a staggering 150% YoY surge in hacks attacking crypto platforms. The issue has gained further attention as the initial criminal trial against FTX co-founder, Sam Bankman-Fried, enters its second week, with allegations of unauthorized access and usage of customer funds.

Additionally, the agency plans to issue orders to "specific major technology firms" to acquire details about their operational practices concerning personal data usage and private currency issuance. Non-banking establishments offering payment platforms will also come under the lens.

The CFPB director further proposed that the Treasury's Financial Stability Oversight Council should categorize certain crypto functions as "systemically important payment clearing or settlement activities." This move could potentially provide other agencies with essential oversight and tools to ensure that a 'stablecoin' remains stable.