Linda Moore President and CEO at TechNet | Official website
TechNet, a network representing innovation economy executives, has announced its response following the U.S. House of Representatives' decision to repeal the Consumer Financial Protection Bureau's (CFPB) larger participant payment rule. This development comes after the Senate also voted to rescind the rule in March, effectively nullifying the regulatory expansion under the Congressional Review Act (CRA).
TechNet had been a vocal opponent of the CFPB rule, initially filing a lawsuit in January alongside NetChoice, challenging the rule. Carl Holshouser, the Executive Vice President of TechNet, expressed gratitude towards the legislative bodies for counteracting 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," he said.
According to Holshouser, the CFPB rule had the potential to exceed the agency’s assigned mandate while also inhibiting innovation within the tech sector, impacting economic progress and consumer benefits. "The CFPB rule not only would have gone far beyond the agency’s mandate but also would have created a chilling effect on the innovation that underpins America’s economic growth and benefits millions of consumers," Holshouser continued. He emphasized anticipation for the resolution to be finalized with the President's signature.
The legal proceedings initiated by TechNet were conducted in the United States Federal District Court for the District of Columbia. The law firm Mayer Brown LLP represented TechNet and NetChoice in the case against the CFPB. This opposition is part of TechNet's ongoing critique since the rule's proposal, further demonstrated by previous formal comments submitted to the CFPB regarding the rule.
Holshouser had also testified on this issue before the U.S. House of Representatives Committee on Financial Services, Subcommittee on Digital Assets, Financial Technology, and Innovation, emphasizing TechNet’s stance against the proposed rule.