TechNet, a national network of innovation economy leaders, announced that the U.S. House of Representatives has repealed the Consumer Financial Protection Bureau's (CFPB) larger participant payment rule under the Congressional Review Act. This follows a Senate vote in March to rescind the rule. TechNet had previously filed a lawsuit against the CFPB's regulatory expansion and led opposition to the rule since its proposal.
Carl Holshouser, Executive Vice President of TechNet, expressed gratitude towards Congress for overturning what he described as an overreach by the CFPB.
"We are grateful to the Senate and the House of Representatives for voting to overturn the CFPB’s attempt to grant itself new powers over the tech industry," Holshouser said. He further criticized the rule for potentially stifling innovation crucial to economic growth and consumer benefits.
In January, TechNet filed a lawsuit in United States Federal District Court for the District of Columbia against the CFPB, challenging both the larger participant payment rule and what they see as an unauthorized extension of authority over non-bank financial technology innovators. The lawsuit was joined by NetChoice and is represented by Mayer Brown LLP.
TechNet had also submitted comments on this rule during its initial proposal phase by the CFPB. Carl Holshouser testified before a U.S. House subcommittee regarding this issue, emphasizing concerns about its impact on digital assets and financial technology.