The CFPB has issued a request for comment on a proposed interpretive rule that would be a significant expansion of payment mechanisms regulated under Regulation E and the Electronic Fund Transfer Act (EFTA). This would include stablecoins and other digital assets that operate as a medium of exchange or as a means of paying for goods and services, which the CFPB interprets as meeting the definition of “funds” for the purpose of EFTA and Regulation E.

Credit unions have until March 31 to submit comments.

The interpretive rule would also clarify the scope of the term “account” for EFTA purposes and include video game accounts used to purchase virtual items, virtual currency wallets, and credit card reward points accounts, depending on the facts and circumstances. Lastly, the CFPB proposes to limit the current exception under EFTA and Regulation E which applies to securities and commodities, specifying that EFTA could apply if a stock, bond, or other form of funds in an investment account is used to purchase goods or services from a retailer.

According to the CFPB, the proposed interpretive rule would assist companies, investors and other market participants who are evaluating existing statutory and regulatory requirements governing electronic fund transfers.

America’s Credit Unions remains concerned with the CFPB’s continued use of interpretive rules to circumvent the notice-and-comment process required by the Administrative Procedures Act.