The US Consumer Financial Protection Bureau (CFPB) has introduced a proposed rule to enhance consumer protection in the cryptocurrency sector. The rule would hold crypto service providers responsible for compensating users who suffer losses due to theft or fraud. It aims to expand the scope of the Electronic Fund Transfer Act (EFTA) to include crypto accounts and redefine "funds" to encompass cryptocurrencies and other assets beyond the US dollar. Wallet providers would be required to disclose consumer rights and provide regular statements and notifications. The proposed rule has drawn criticism for its broad definitions and lack of consultation, with concerns raised about its practicality and potential impact on non-custodial wallets. However, proponents argue that the rule could provide stronger protections against cyber threats and crypto hacks. Public comments on the proposal are open until March 31.



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