{"id":13558,"date":"2023-10-08T17:21:59","date_gmt":"2023-10-08T17:21:59","guid":{"rendered":"https:\/\/cryptoheretostay.com\/?p=13558"},"modified":"2023-10-08T17:22:07","modified_gmt":"2023-10-08T17:22:07","slug":"us-considering-application-of-electronic-fund-transfer-act-to-crypto-accounts","status":"publish","type":"post","link":"https:\/\/cryptoheretostay.com\/?p=13558","title":{"rendered":"US considering application of Electronic Fund Transfer Act to crypto accounts"},"content":{"rendered":"<p> <script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"crypto\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<\/p>\n<p>The US Consumer Financial Protection Bureau (CFPB) is evaluating the application of the Electronic Fund Transfer Act (EFTA) to cryptocurrency platforms.<\/p>\n<p>The move aims to bolster consumer protections in a market plagued by recent significant hacks on platforms like Axie Infinity, Crypto.com, and FTX.<\/p>\n<p>EFTA regulations mandate that electronic fund facilitators inform users of their liabilities concerning unauthorized transfers.<\/p>\n<h2>Crypto Hacks, Financial Stability &amp; Data Rights<\/h2>\n<p>During a conference organized by The Brookings Institution, CFPB Director Rohit Chopra brought to the fore the agency&#8217;s intentions of delving deeper into the operational dynamics of influential tech entities.<\/p>\n<p>The spotlight is on their methodologies in handling user data and their strategic intentions surrounding the roll-out or backing of private digital currencies. This initiative stems from a growing realization of vulnerabilities in the crypto realm, with unauthorized transfers becoming more commonplace.<\/p>\n<p>To tackle this, the CFPB is contemplating releasing more comprehensive guidelines, clarifying the boundaries and obligations under the EFTA for digital currencies and their handlers.<\/p>\n<p>Chopra also shed light on the pressing need to imbue the crypto ecosystem with more financial stability.\u00a0He cited a 2021 report, hinting at a potential role the Financial Stability Oversight Council might undertake.<\/p>\n<p>The council could classify certain cryptocurrency-related activities as pivotal for payment and settlement processes, an action rooted in the Dodd-Frank Act&#8217;s provisions. Such a categorization would pave the way for more stringent oversight, especially ensuring instruments like stablecoins live up to their promise of stability.<\/p>\n<p>On a parallel note, the CFPB is on the cusp of announcing a meticulously crafted rule around personal financial data rights. This strategic move aims to catalyze the transition to a transparent banking paradigm while underscoring the necessity for a fortified framework protecting user data.<\/p>\n<h2>Regulatory Evolution<\/h2>\n<p>A potentially transformative perspective emerged when SDNY Judge Denise Cote expressed her viewpoint that cryptocurrencies could be best understood under the &#8220;funds&#8221; umbrella.<\/p>\n<p>Embracing this interpretation would signify a fundamental shift, enveloping cryptocurrency platforms within the protective ambit of the EFTA.<\/p>\n<p>While this would undeniably bolster consumer-centric safeguards, it also sets the stage for more rigorous compliance demands on exchanges. As the CFPB hones its focus on the ever-evolving crypto landscape, industry participants and consumers alike are keenly awaiting more nuanced and definitive policy directions.<\/p>\n<p>The post US considering application of Electronic Fund Transfer Act to crypto accounts appeared first on CryptoSlate.<\/p>\n<p><script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"bitcoin\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<br \/><a href=\"https:\/\/cryptoslate.com\/us-considering-application-of-electronic-fund-transfer-act-to-crypto-accounts\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The US Consumer Financial Protection Bureau (CFPB) is evaluating the application of the Electronic Fund Transfer Act (EFTA) to cryptocurrency platforms. The move aims to bolster consumer protections in a market plagued by recent significant hacks on platforms like Axie Infinity, Crypto.com, and FTX. EFTA regulations mandate that electronic fund facilitators inform users of their [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":13559,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_wp_rev_ctl_limit":""},"categories":[3],"tags":[],"class_list":["post-13558","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ethereum-news"],"_links":{"self":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/13558","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=13558"}],"version-history":[{"count":1,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/13558\/revisions"}],"predecessor-version":[{"id":13560,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/13558\/revisions\/13560"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/media\/13559"}],"wp:attachment":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=13558"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=13558"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=13558"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}