On January 10, the CFPB proposed an interpretive rule that could significantly broaden the scope of the EFTA to encompass a broad range of digital assets, including—if they meet certain requirements — cryptocurrency accounts, credit card rewards accounts, and video game accounts. The Bureau’s proposed rule does so by broadly defining the terms “funds” and “account.” The term “funds” is interpreted to include assets that act or are used like money but are beyond traditional fiat currencies, such as stablecoins and other digital assets that function as a medium of exchange or a means of payment. The rule also clarifies the definition of “account,” to cover a range of consumer asset accounts, including prepaid accounts and other accounts that facilitate electronic payments. The Bureau’s proposal and potential implications for stakeholders were covered by Orrick Insights on January 15. Comments must be received by March 31.
