Clarksville Times

Representative French Hill of Arkansas, the Chairman of the House Financial Services Subcommittee on Digital Assets, Financial Technology and Inclusion, delivered strong remarks at a hearing focusing on the Consumer Financial Protection Bureau's (CFPB) recent actions to restrict competition in the payments industry.

Hill expressed his concerns about the CFPB's proposal, stating, “Today’s hearing is critical, because it’s going to talk about this ‘larger participants’ in the general-use digital consumer payment applications market. This is the sixth LPR that the CFPB has initiated." He criticized the short comment period and flawed cost-benefit analysis associated with the CFPB's actions.

The Chairman highlighted the confusion caused by the CFPB's proposal, noting, “Many companies are utterly confused, wondering not only how the rule will be implemented but whether they are even covered by it." He accused the CFPB of attempting to widen its regulatory scope to become a 'technology regulator'.

Hill raised concerns about the impact of the CFPB's proposal on innovation and competition in the payments sector, emphasizing, “There is no doubt that this proposal will decrease incentives to innovate in the payments space and leave consumers encumbered with fewer firms from which to choose a payment method–that decreases competition."

In conclusion, Hill called for a reevaluation of the CFPB's approach, stating, “The CFPB needs to go back to the drawing board, work to protect consumers, and not hinder innovation or expand the CFPB’s insatiable reach for more power and scope."

The hearing shed light on the ongoing debate between consumer protection and regulatory overreach in the payments industry, indicating a continued focus on ensuring a competitive and innovative marketplace for financial services.