S.jres28 - 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. (119th Congress)
Summary
This document is a joint resolution passed by the US Congress to disapprove a rule submitted by the Bureau of Consumer Financial Protection (BCFP). The rule in question defines "Larger Participants of a Market for General-Use Digital Consumer Payment Applications." The resolution effectively nullifies the BCFP's rule, preventing it from taking effect.
The resolution reflects Congress's oversight role regarding regulatory agencies. It indicates a disagreement with the BCFP's approach to regulating digital payment applications.
The action taken by Congress is within its legislative powers as defined by Article I of the US Constitution.
Expected Effects
The primary effect is that the BCFP's rule defining larger participants in the digital payment application market will not be enforced. This means the regulatory framework for these entities will remain as it was before the rule's submission.
This could lead to less regulatory scrutiny for some digital payment applications. The lack of specific definitions may create uncertainty for businesses operating in this sector.
Potential Benefits
- Potentially reduces compliance costs for smaller digital payment application companies, fostering innovation.
- Avoids potential over-regulation that could stifle the growth of the digital payment market.
- Reasserts Congressional authority over regulatory agencies, ensuring accountability.
- May prevent the BCFP from expanding its regulatory reach beyond its intended scope.
- Could lead to a more flexible regulatory environment that adapts better to technological changes.
Most Benefited Areas:
Potential Disadvantages
- May leave consumers vulnerable to potential risks associated with unregulated digital payment applications.
- Could hinder the BCFP's ability to protect consumers from unfair or deceptive practices in the digital payment market.
- Creates uncertainty for larger companies that may have been preparing to comply with the new rule.
- May lead to a fragmented regulatory landscape with inconsistent enforcement.
- Could undermine the BCFP's authority and expertise in regulating consumer financial products and services.
Constitutional Alignment
The resolution aligns with Article I, Section 1 of the US Constitution, which vests all legislative powers in Congress. This includes the power to oversee and disapprove rules submitted by executive branch agencies like the BCFP. The Congressional Review Act (CRA) provides a mechanism for Congress to review and disapprove agency rules, and this resolution appears to be an exercise of that authority.
Furthermore, the resolution does not appear to infringe upon any individual rights or liberties protected by the Bill of Rights. It is a procedural action related to regulatory oversight.
However, some may argue that frequent use of resolutions to disapprove agency rules could disrupt the balance of power between the legislative and executive branches.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).