SJRES 28: A joint resolution disapproving the rule submitted by the Bureau of Consumer Financial Protection relating to "Defining Larger Participants of a Market for General-Use Digital Consumer Payment Applications".

SJRES 28 in plain English: This joint resolution, now signed into law, cancels a CFPB rule that would have extended the agency's supervisory authority over large nonbank digital payment app companies. The nullified rule defined 'larger participants' in the digital payment app market as nonbank companies processing at least 50 million transactions annually that are not small businesses.

Stated purpose

This resolution cancels a CFPB rule that would have defined which large nonbank digital payment app companies fall under CFPB supervision, removing that rule from effect entirely.

Key points

• Cancels a CFPB rule published December 10, 2024, on digital payment app oversight
• The nullified rule would have applied to nonbank payment apps with at least 50 million annual transactions
• Removes CFPB supervisory authority over large nonbank digital consumer payment app companies

Arguments supporters make

• Large tech and payment companies should not be regulated like banks — applying bank-style federal supervision to payment apps goes beyond what Congress originally intended when it created the CFPB.
• The CFPB rule was created late in an outgoing administration and represents regulatory overreach that adds compliance burdens on innovative companies without clear consumer benefit.
• Consumers already have protections through other laws and market competition; this extra layer of federal supervision is unnecessary and could slow the growth of convenient, low-cost payment tools.

Arguments opponents make

• Hundreds of millions of Americans use these payment apps for everyday financial transactions, and without CFPB supervision there is no regular federal check on whether these companies are treating consumers fairly or protecting their data.
• Banks that offer similar payment services are already subject to federal supervision, so cancelling this rule lets large nonbank payment apps operate under looser oversight — creating an uneven playing field.
• The CFPB went through a full public rulemaking process before issuing this rule; overturning it by resolution skips the normal regulatory review and leaves a gap in consumer protection for a fast-growing market.

Tradeoffs

Cancelling the rule reduces regulatory burden on large payment app companies and limits federal agency reach, but it also removes a layer of consumer oversight in a market used by a large share of the American public with no immediate replacement protection in place.

Current status in Congress: Became law.

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