CFPB Could See Reduced Role in Crypto Oversight

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The Consumer Financial Protection Bureau (CFPB) is expected to have a reduced role in regulating cryptocurrencies, as agencies such as the Securities and Exchange Commission (SEC) and state regulators will assume more significant responsibilities, according to Ethan Ostroff, a partner at Troutman Pepper.

He noted:

“I think with the current administration, my sense is, we are highly likely to see a significant pullback by the CFPB in the context of the activity by other regulators.”

According to him, state regulators have authority under the Consumer Financial Protection Act (CFPA) to take over some of the CFPB’s functions. 

However, certain regulatory functions will remain with the CFPB, as provided by law.