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Congressman Mike Flood and Financial Services Committee Chairman Patrick McHenry have sent a letter to Consumer Financial Protection Bureau (CFPB) Director Rohit Chopra, calling for an extension of the comment period for the proposed rulemaking titled "Defining Larger Participants of a Market for General-Use Digital Consumer Payment Applications."

The letter, signed by 18 colleagues, emphasizes the importance of innovation in the American economy and the potential consequences of the proposed rulemaking on nonbank firms and consumers. The Members of Congress state, "Innovation is the driving engine of the American economy and the proposed rulemaking’s broad scope will have significant consequences on the ability for nonbank firms to offer innovative products and services and for consumers to benefit from competition in the market."

Recognizing the need for clarity and comprehensive feedback, the letter requests a 30-day extension of the comment period. The additional time would allow market participants to provide thorough feedback on the proposal, taking into account its broad scope and the potential implications for the industry.

The letter concludes by urging the CFPB to consider the importance of a transparent and inclusive regulatory process. It states, "Given the breadth of the proposal and ambiguity regarding its applicability, we urge the Bureau to extend the comment period for an additional 30 days. This additional time will give market participants the opportunity to provide comprehensive feedback."

The full letter can be accessed by clicking here.

As the CFPB considers the proposed rulemaking, it is crucial to take into account the concerns raised by Congressman Flood, Chairman McHenry, and their colleagues. The extension of the comment period would allow for a more thorough and inclusive discussion, ensuring that all stakeholders have the opportunity to provide their input and address any potential issues with the proposed rule.

Innovation plays a vital role in driving the American economy forward, and any regulations should balance the need for consumer protection with the fostering of innovation and competition in the market. As Congressman Flood and Chairman McHenry rightly point out, the proposed rulemaking's broad scope could have significant consequences on nonbank firms' ability to offer innovative products and services, as well as limit consumers' access to competitive options.

The call for an extended comment period reflects a commitment to a transparent and collaborative regulatory process. By providing market participants with additional time to provide comprehensive feedback, the CFPB can ensure that the final rule takes into account the diverse perspectives and potential impact on the industry.

In this rapidly evolving digital landscape, it is essential for regulators to carefully consider the implications of any proposed rules. By extending the comment period, the CFPB can demonstrate its dedication to gathering input from industry stakeholders and the public, fostering an environment that encourages innovation while safeguarding consumer interests.

The CFPB now has an opportunity to carefully review the concerns raised by Congressman Flood, Chairman McHenry, and their colleagues. By granting an extension of the comment period, the agency can ensure that the final rule strikes the right balance between promoting innovation and protecting consumers in the digital payment applications market.

For additional details, please follow this link: https://flood.house.gov/media/press-releases/congressman-flood-and-chairman-mchenry-lead-letter-urging-cfpb-extend-comment