Mar 6, 03:05 PM

Senate Republicans Repeal CFPB Rule in 53-43 Vote, Citing Crypto Deregulation

Senate Republicans have voted 53-43 to repeal a Consumer Financial Protection Bureau (CFPB) rule implemented in December 2024 that prohibited payment platforms such as PayPal and Venmo from banning users without cause. The rule also addressed dispute resolution processes for fraudulent activities. The repeal, supported by all Senate Republicans except Senator Josh Hawley, removes oversight of nonbank payment platforms handling over 50 million transactions annually. Senate Majority Leader John Thune cited the need to deregulate the crypto industry as a key motivation. Critics argue this could lead to ideological debanking and reduced consumer protections. The CFPB rule had been designed to prevent discriminatory practices by payment platforms and ensure compliance with federal laws. Its repeal has sparked concerns about the potential for increased financial exclusion and lack of accountability for large payment platforms.