Okay, let’s break down S.J. Res. 28 and what it means in simple terms.
Headline: Congress Attempts to Block CFPB Rule on Digital Payment App Oversight
What’s Happening?
The U.S. Congress is trying to overturn a new rule from the Bureau of Consumer Financial Protection (CFPB) that aims to oversee large digital payment apps like Venmo, Cash App, and potentially even parts of PayPal. This effort is embodied in a piece of legislation called “S.J. Res. 28,” which stands for Senate Joint Resolution 28. The core purpose of the resolution is to disapprove of the CFPB’s rule regarding “Defining Larger Participants of a Market for General-Use Digital Consumer Payment Applications.”
What’s the Rule They’re Fighting Against? (The CFPB Rule)
The CFPB, which is a government agency tasked with protecting consumers in the financial marketplace, believes that large digital payment apps should be subject to greater scrutiny and regulation. They’re worried about potential consumer harms, such as:
- Fraud: Scams and unauthorized transactions happening within the apps.
- Data Security: Risks associated with how these apps handle users’ personal and financial data.
- Disputes: Difficulties in resolving disputes when something goes wrong with a payment.
To achieve this, the CFPB created a rule to define which digital payment apps are “large enough” to warrant this increased oversight. These apps would be subject to regular examinations, similar to how banks are supervised. The CFPB believes this is necessary because these apps are handling a growing amount of consumer money and are increasingly important in the financial lives of many Americans.
What Does S.J. Res. 28 Do?
S.J. Res. 28 is a way for Congress to overrule the CFPB. It uses a mechanism called the Congressional Review Act (CRA). The CRA allows Congress to overturn a regulation issued by a federal agency with a simple majority vote in both the House and the Senate, and the President’s signature. If S.J. Res. 28 passes, the CFPB’s rule would be effectively nullified, and they would be prevented from issuing a similar rule in the future without specific authorization from Congress.
Why Are Some Members of Congress Trying to Block the Rule?
The main arguments against the CFPB’s rule, and therefore in support of S.J. Res. 28, typically include:
- Overreach: Some argue that the CFPB is exceeding its authority and that the rule is an unnecessary expansion of government regulation.
- Innovation Concerns: Critics worry that increased regulation could stifle innovation in the digital payments space, making it harder for new companies to compete and potentially increasing costs for consumers.
- Duplication: Some might argue that existing laws and regulations already adequately protect consumers using these apps.
- Economic Impact: Concerns that the rule could negatively impact the growth and competitiveness of the digital payments industry.
In Simple Terms:
Imagine the CFPB as a financial watchdog that wants to keep a closer eye on big digital payment apps. S.J. Res. 28 is like a “stop” sign from Congress, telling the CFPB that they don’t think the new rule is a good idea and blocking them from implementing it.
What’s Next?
For S.J. Res. 28 to become law, it needs to:
- Pass both the Senate and the House of Representatives.
- Be signed into law by the President.
The political landscape will determine the fate of S.J. Res. 28. If the President supports the CFPB’s rule, he would likely veto the resolution, requiring a two-thirds majority in both houses of Congress to override the veto and kill the CFPB rule.
In Summary:
- The CFPB wants to regulate large digital payment apps more closely.
- S.J. Res. 28 is an attempt by Congress to block that regulation.
- The outcome depends on the votes in Congress and the President’s stance.
This is a developing situation, and the debate over the CFPB’s authority and the regulation of digital payment apps is likely to continue.
The AI has delivered the news.
The following question was used to generate the response from Google Gemini:
At 2025-05-14 22:01, ‘S.J. Res.28(ENR) – Disapproving the rule submitted by the Bureau of Consumer Financial Protection relating to Defining Larger Participants of a Market for General-Use Digital Consumer Payment Applications.’ was published according to Congressional Bills. Please write a detailed article with related information in an easy-to-understand manner. Please answer in English.
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