This past April, the Consumer Financial Protection Bureau (CFPB) released a report scrutinizing video game forums and virtual worlds. The report does not actually note any authority of the CFPB to oversee or regulate the video game industry and what they label as “digital marketplaces.” And, even though the report does not refer to any specific law, it does identify the video game industry as a target for future enforcement. This is another demonstration of the CFPB’s ever-encroaching overreach into the lives of everyday Americans.

The report claims that virtual currencies and digital goods (such as gameplay collectibles or cosmetic skins for avatars) are commodities and services that could qualify as traditional financial products. The CFPB contends that these virtual assets have legal real-world value.

The value of the gaming industry is certainly indisputable. The market is projected to be worth $312 billion by 2026. This astonishing number is because of the industry’s tremendous innovation and creativity in the entertainment it provides to its loyal consumers. However, to essentially treat a video game account as a bank account is absurd – even by CFPB standards. 

Investigations into the gaming industry will stifle the extremely innovative market we all know and love and result in increased development and compliance costs for developers. Leading to… you guessed it… higher costs for consumers.

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