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 Senate and House of Representatives disapproving a rule submitted by the Bureau of Consumer Financial Protection (BCFP). The rule in question relates to defining larger participants in the market for general-use digital consumer payment applications. The resolution states that the rule shall have no force or effect.
Expected Effects
The disapproval of the BCFP rule means that the original definition of 'larger participants' in the digital payment application market will not be implemented. This could lead to less regulatory oversight of certain digital payment companies. The specific impact will depend on the original intent and scope of the rule.
Potential Benefits
- Potentially reduces regulatory burden on smaller digital payment application companies, fostering innovation.
- Could lead to lower costs for consumers if companies pass on savings from reduced compliance.
- May prevent the BCFP from overreaching its authority, preserving market freedom.
- Could encourage more competition in the digital payment space.
- Might limit the BCFP's ability to stifle emerging technologies through regulation.
Most Benefited Areas:
Potential Disadvantages
- Reduced oversight of larger digital payment applications could increase risks to consumers.
- May lead to less protection against fraud or data breaches within these payment systems.
- Could hinder the BCFP's ability to address unfair or deceptive practices in the digital payment market.
- Might create an uneven playing field if larger participants are not subject to the same regulations as smaller ones.
- Could limit the BCFP's ability to adapt regulations to the rapidly evolving digital payment landscape.
Constitutional Alignment
The resolution reflects Congress's power to check the authority of executive agencies like the BCFP, aligning with the principle of separation of powers established in Article I, Section 1 of the Constitution. Congress is using its legislative power to disapprove a rule made by an executive agency. The specific alignment with the Constitution depends on whether the original rule was within the BCFP's delegated authority.
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).