Jonathan Kolodziej was quoted in PaymentsSource regarding the impact that a recent prepaid proposal by the Consumer Financial Protection Bureau might have on virtual currency providers, such as Bitcoin. “If the proposal were ultimately enacted 'as is,' consumers of this new broad class of products would be afforded considerably more protections than what they receive today. The CFPB's proposed amendments to Regulations E and Z would certainly broaden the scope of what is considered a 'prepaid account' under the current law,” said Kolodziej.
Regulation E outlines the rules and procedures for electronic funds transfers (EFTs) and outlines guidelines for those who sell and issue electronic debit cards; while, Regulation Z, the Truth in Lending Act (TILA), requires debt lenders to disclose all the specifics of a given loan.
“Because the bureau has made it clear in the past that it is aware of the risks consumers face when they use or buy virtual currencies, it may take further steps to add protections for Bitcoin users,” Kolodziej added. “They specifically state in the most recent proposal that they have not resolved the issue of whether, and to what extent, existing laws or the proposal may apply.”
Read the complete PaymentsSource article, “The CFPB's Prepaid Proposal Could Rattle Bitcoin Companies.”