US regulators plan to expand electronic funds transfer laws to crypto assets

The U.S. Consumer Financial Protection Bureau (CFPB) has proposed subjecting digital wallets to the same protection standards as bank accounts, requiring service providers to compensate customers when hackers or unauthorized transactions result in the loss of customer funds. The CFPB plans to expand the scope of the Electronic Funds Transfer Act to include stablecoins and other digital assets, emphasizing that assets "anything used like currency" will be protected. The CFPB hopes to strengthen consumer protection through this rule while setting higher compliance standards for the cryptocurrency industry. The rule change could have a significant impact on U.S. companies that hold customer crypto assets, such as exchanges and custodians, because these businesses need to maintain sufficient reserves to cope with potential losses. The CFPB is seeking industry comments, and the comment period ends on March 31, after which it will decide whether to issue a final rule. (Financial Times)