CFPB Proposed Rules Relating to Prepaid Accounts Comment

The Consumer Financial Protection Bureau may apply rules meant for prepaid products to digital currency businesses. We recommend against it.

On December 23, 2014, the Consumer Financial Protection Bureau published a proposed rulemaking relating to prepaid products that briefly noted that some of its requirements may apply to virtual currency products. While we do not disagree that meaningful steps can be taken to protect virtual currency consumers, we believe that the choice to regulate virtual currency firms as providers of prepaid accounts is premature. Below are comments on the proposal filed by Coin Center.

A direct download of this comment is available here.

Based in Washington, D.C., Coin Center is the leading non-profit research and advocacy center focused on the public policy issues facing cryptocurrency and decentralized computing technologies like Bitcoin and Ethereum. Our mission is to build a better understanding of these technologies and to promote a regulatory climate that preserves the freedom to innovate using permissionless blockchain technologies.