Share this article
CFPB Could Demand Consumer Protections for Digital Wallets
The Consumer Financial Protection Bureau (CFPB) has published a set of new proposals that could an impact cryptocurrency users.
Updated Sep 11, 2021, 11:19 a.m. Published Nov 14, 2014, 3:50 p.m.
Make us preferred on Google
The Consumer Financial Protection Bureau (CFPB) has published a set of proposals that could impact cryptocurrency users.
Its 870-page report, published 13th November, is largely focused on prepaid debit cards, but some provisions in the document may apply to cryptocurrency wallets too.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
Regulations may apply to all digital wallets
The bureau is still seeking comment on its proposed definition of ‘prepaid accounts’ and admits that the document remains a work-in-progress.
While most of its proposal deals with cards, however, the CFPB notes that it could apply to digital currencies as well:
“The Bureau also recognizes that the proposed rule may have potential application to virtual currency and related products and services. As a general matter, however, the Bureau’s analysis of mobile financial products and services, as well as and virtual currencies and related products and services, including the applicability of existing regulations and this proposed regulation to such products and services, is ongoing. The proposed rule does not specifically resolve these issues.”
There are significant variations in the way digital wallets hold funds and process payments, the CFPB states.
Most allow users to store their bank account, debit card, credit card or prepaid credit card credentials on mobile devices. Some allow consumers to store funds directly, or by funding a prepaid product that can be used to withdraw funds, it says.
CFPB already accepts digital currency complaints
The bureau issued an advisory on digital currencies back in August, warning US consumers about the potential dangers of the bitcoin ecosystem. It also began accepting consumer complaints regarding digital currencies.
At the time the CFPB told CoinDesk that it was actively working to understand how digital currencies and other emerging technologies affect consumer protections. The bureau said it would continue to carefully monitor the development of digital currencies and take appropriate steps if necessary.
Judging by the latest set of proposals, the bureau has not changed its position on digital currencies – they remain under examination.
Mobile image via Shutterstock.com
More For You
KuCoin captured a record share of centralised exchange volume in 2025, with more than $1.25tn traded as its volumes grew faster than the wider crypto market.
What to know:
- KuCoin recorded over $1.25 trillion in total trading volume in 2025, equivalent to an average of roughly $114 billion per month, marking its strongest year on record.
- This performance translated into an all-time high share of centralised exchange volume, as KuCoin’s activity expanded faster than aggregate CEX volumes, which slowed during periods of lower market volatility.
- Spot and derivatives volumes were evenly split, each exceeding $500 billion for the year, signalling broad-based usage rather than reliance on a single product line.
- Altcoins accounted for the majority of trading activity, reinforcing KuCoin’s role as a primary liquidity venue beyond BTC and ETH at a time when majors saw more muted turnover.
- Even as overall crypto volumes softened mid-year, KuCoin maintained elevated baseline activity, indicating structurally higher user engagement rather than short-lived volume spikes.
More For You
Here are the winners and losers (so far) in bitcoin mining from Nvidia's $2B CoreWeave investment
Nvidia’s deepened partnership with CoreWeave raises pressure on bitcoin miners pivoting to AI infrastructure.
What to know:
- Shares of most bitcoin miners who have shifted business plans to AI infrastructure fell after Nvidia announced a fresh $2 billion investment in CoreWeave.
- One analyst says Nvidia’s deepening partnership with CoreWeave could divert GPU access and funding away from independent miners trying to pivot into AI and high-performance computing.
- Core Scientific, which CoreWeave attempted, but failed, to acquire in 2025, is the only miner posting gains on Monday.
Top Stories
