“Gaming companies subject to the EFTA could violate federal consumer financial law if they fail to address gamers’ account issues,” the CFPB emphasized, calling for public comments by March 31.
Privacy and Data Collection Under Scrutiny
In addition to clarifying consumer protections, the CFPB is seeking feedback from companies on their practices related to the collection, use, and sharing of payment data. The agency expressed concern that many payment products collect excessive data beyond what’s needed to complete transactions.
Key areas of inquiry include:
- The effectiveness of current privacy protections.
- Consumers’ ability to opt out of data collection.
- Suggestions for stronger data safeguards.
Comments on privacy-related issues are open until April 11.
Industry Reactions
The proposed rules have elicited mixed reactions from the crypto industry. Bill Hughes, senior counsel at Consensys, and Peter Van Valkenburgh, executive director of Coin Center, expressed concerns about making wallet providers responsible for unauthorized transfers. Van Valkenburgh questioned whether the rules would apply to wallet providers that do not custody user funds.
