The US House of Representatives supported the Senate’s decision to repeal a regulatory rule passed by the Consumer Financial Protection Bureau (CFPB) that would have given the agency the authority to oversee tech giants. About this informs Finextra.
The list of entities affected by the rule included Apple, Google, Amazon, PayPal, Venmo, Block and Zelle, which offer digital wallets and payment services.
Voting took place along party lines. The House passed a resolution under the Congressional Review Act declaring “such rule to be of no force and effect.” After the document is approved by both houses of Congress, the final decision must be made by President Trump.
The rescinded rule, introduced by the CFPB late last year, was intended to require non-bank players such as tech giants to comply with federal law in the same way as banks, credit unions and other institutions already under the regulator’s supervision. It also involved X, which is preparing to launch payment services later this year.
Elon Musk, the owner of Company X, has become the face of a campaign against the CFPB that is being supported by the Trump administration through the Department of Government Effectiveness (DOGE). Last month, he posted a “CFPB RIP” message on his social network with a gravestone emoticon.
It will be recalled that in February 2025, President Trump fired the head of the CFPB, Rohit Chopra. During his tenure, the bureau initiated a number of serious restrictions on financial companies. The CFPB and Chopra were sued in federal court in Washington by leading U.S. technology groups TechNet and NetChoice, accusing the regulator of excessive oversight of payment systems and digital wallets.
