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Warren: CFPB Has Power to Stop Crypto Fraud

The Consumer Financial Protection Bureau (CFPB) doesn’t have to wait for other agencies’ action to crack down on cryptocurrency payment abuse, Sen. Elizabeth Warren says, per Bloomberg.

Warren says Americans making use of the popular digital coins are more at risk of fraud and other related abuses, including being unable to get their money out of crypto exchanges.

“With their intense focus on consumers, the CFPB has a role to play as a cop on the beat,”

Warren said in an interview with Bloomberg on Thursday. “Crypto infiltration of the market cuts across different regulatory agency’s jurisdiction. The answer to that is not that each agency should wait for the other to act, it’s that the agencies should all pick up the tools available to them and move.”

Lawmakers of both U.S. parties have said they’re worried about the possibility of fraud or crime in the popular industry with its very quick growth.

Meanwhile, regulators have signaled that they plan to institute more regulations. Before a Senate Banking Committee hearing on Thursday (Oct. 28), CFPB Director Rohit Chopra said he plans to look at how tech giants like Facebook are using cryptocurrencies. This is part of a wider probe on how the companies are using data from consumers.

PYMNTS reported last week that the CFPB has a plan to send requests for information to big tech companies.

Chopra said Facebook, Amazon and Alphabet’s Google, along with PayPal, Square and other companies, would get 55-page questionnaires about how information is collected, used and stored.

This is part of a larger initiative which will help with protecting consumers and data, along with making sure competition in consumer financial services.

Chopra has only recently been named director of the watchdog agency. He is a former Democratic commissioner from the FTC. He has a reputation for being tough on tech companies and was a part of the creation of the CFPB a decade ago alongside Warren.


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