Consensys Challenges CFPB Unhosted Wallet Rule

Consensys Opposes CFPB Rule on Unhosted Blockchain Wallets

• Consensys challenges a proposed rule by the CFPB to regulate unhosted wallets under the Electronic Funds Transfer Act (EFTA).
• The rule would hold developers accountable for unauthorized transactions in decentralized wallets.
• Bill Hughes from Consensys warns of “unparalleled damage” to U.S. blockchain developers if implemented.
• The proposal was introduced just before Joe Biden left office and is now under review by Scott Bessent, Acting Director of the CFPB.
• Consensys argues that the rule violates the Administrative Procedure Act and expects its withdrawal or revision.

Consensys has criticized a CFPB proposal to regulate unhosted wallets, arguing it could harm blockchain developers and violate legal procedures. They anticipate changes under Scott Bessent’s leadership at the CFPB.