Washington, D.C. – TechNet, the national, bipartisan network of innovation economy CEOs and senior executives, today issued a statement from TechNet’s Executive Vice President, Carl Holshouser, after the U.S. House of Representatives under the Congressional Review Act (CRA) repealed the Consumer Financial Protection Bureau (CFPB)’s larger participant payment rule. The Senate voted to rescind the rule in March. TechNet filed suit against the CFPB’s regulatory expansion in January and has led opposition to the rule since it was proposed.
“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,” said Carl Holshouser, EVP of TechNet. ”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. We look forward to President Trump signing this resolution and rescinding the CFPB’s flawed rule once and for all.”
TechNet filed suit in January in United States Federal District Court for the District of Columbia against the CFPB, challenging the larger participant payment rule and the agency’s attempt to grant itself new authority over non-bank financial technology (fintech) innovators. TechNet was joined in the suit by NetChoice. TechNet and NetChoice are represented in this matter by the law firm of Mayer Brown LLP.
TechNet also previously submitted comments on the rule when the CFPB initially proposed it. Those comments can be found here. TechNet’s statement following the issuance of the rule can be found here.
Carl Holshouser, TechNet’s Executive Vice President, testified on the proposed rule before the U.S. House of Representatives Committee on Financial Services, Subcommittee on Digital Assets, Financial Technology, and Innovation. His opening statement can be found here, and his full testimony can be found here.