House Republicans took aim at the Consumer Financial Protection Bureau (CFPB) at a Wednesday hearing over its proposed rule regulating financial services like digital wallets and payment apps. 

The agency announced its proposal to supervise the nonbank financial technology in November, with CFPB Director Rohit Chopra saying the rule “would crack down on one avenue for regulatory arbitrage by ensuring large technology firms and other nonbank payments companies are subjected to appropriate oversight.”

But Republicans say it’s the latest example of the CFPB overstepping its mandate and unnecessarily imposing regulation on private companies. 

“So for the people watching at home, the CFPB is looking for something to do because they are busy bodies,” Rep. Byron Donalds (R-Fla.) said at the hearing of the House Financial Services Subcommittee on Digital Assets, Financial Technology and Inclusion. 

“There is no need for them to regulate in the space. Mr. Chopra once again is way beyond his bounds,” he added

Donalds argued the rule would limit Americans’ ability to buy and sell goods and services and overly involve CFPB in digital transactions. 

Read more in The Hill

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