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".

Bill Number: S.J.Res. 28
Origin Chamber: Senate
Congress: 119th Congress, Session 1
Policy Area: Finance and Financial Sector
Status: Became Law
Became Law: Public Law 119-11
Latest Action: 2025-05-09: Became Public Law No: 119-11.
Last Updated: 2026-07-27T16:40:56Z

AI-Generated Summary

Purpose

This joint resolution (S.J. Res. 28) aims to disapprove and nullify a specific final rule issued by the Bureau of Consumer Financial Protection (CFPB), a federal agency that oversees consumer financial products and services. The rule in question defines "larger participants" in the market for general-use digital consumer payment applications, such as mobile apps for peer-to-peer payments (e.g., Venmo or Cash App). By disapproving the rule, Congress prevents it from being implemented.

Key Provisions

Congress explicitly disapproves the CFPB's final rule titled "Defining Larger Participants of a Market for General-Use Digital Consumer Payment Applications," published in the Federal Register on December 10, 2024 (89 Fed. Reg. 99582).
The resolution states that the disapproved rule "shall have no force or effect," meaning it cannot be enforced or applied.

Significant Changes to Existing Law

This resolution invokes the Congressional Review Act (CRA), a 1996 law that allows Congress to overturn federal agency rules within a limited time frame after they are finalized.
It reverses the CFPB's attempt to expand its supervisory authority over certain digital payment providers by classifying them as "larger participants," which would have subjected them to regular CFPB examinations for compliance with consumer protection laws.
Without this resolution, the rule would have integrated these digital payment apps into the CFPB's existing framework for supervising non-bank financial entities, similar to how it oversees payday lenders or credit reporting agencies.

Potential Impacts

On Government Agencies: The CFPB loses the ability to directly supervise and examine qualifying digital payment providers, potentially limiting its enforcement tools for consumer protection in this sector. This could shift oversight to other agencies or self-regulation by companies.
On Citizens: Consumers using digital payment apps may face less federal scrutiny of these services for issues like unfair fees, data privacy, or fraud prevention, though state laws or other federal rules (e.g., from the Federal Trade Commission) could still apply.
On International Relations: Minimal direct impact, as the rule focused on U.S.-based digital payment markets; however, it could indirectly affect global fintech firms operating in the U.S. by reducing regulatory hurdles.

Main Stakeholders Affected

Bureau of Consumer Financial Protection (CFPB): Directly impacted as its rulemaking authority is overridden.
Digital Payment Providers: Companies offering general-use apps (e.g., PayPal, Venmo, Apple Pay) that would have been classified as "larger participants" benefit from avoided federal supervision, potentially reducing compliance costs.
Consumers and Advocacy Groups: Users of these apps and organizations focused on financial consumer rights may see reduced protections against potential abuses in digital payments.
Congress and Lawmakers: Demonstrates Congress's role in checking executive branch agencies, particularly in regulating emerging technologies like fintech.

Notable Legal, Constitutional, or Political Implications

Legal: Reinforces the CRA's mechanism for congressional oversight of agency rules, ensuring that significant regulations require implicit congressional approval. The rule's nullification is immediate and cannot be reissued in substantially similar form without new congressional authorization.
Constitutional: Highlights the separation of powers, with Congress exercising its legislative authority to limit executive agency actions, aligning with Article I of the U.S. Constitution, which vests lawmaking in Congress.
Political: As a joint resolution passed in the 119th Congress (starting in 2025), it reflects bipartisan or majority congressional intent to curb federal regulation of digital finance, possibly in response to industry lobbying or concerns over overreach in tech sectors. This could set a precedent for future CRA uses against fintech or consumer protection rules.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Sen. Ricketts, Pete [R-NE]

Cosponsors (5)

Sen. Budd, Ted [R-NC], Sen. Banks, Jim [R-IN], Sen. Hagerty, Bill [R-TN], Sen. Fischer, Deb [R-NE], Sen. Scott, Tim [R-SC]

Recent Actions

2025-05-09: Became Public Law No: 119-11.
2025-05-09: Became Public Law No: 119-11.
2025-05-09: Signed by President.
2025-05-09: Signed by President.
2025-05-05: Presented to President.
2025-05-05: Presented to President.
2025-04-09: Motion to reconsider laid on the table Agreed to without objection.
2025-04-09: On passage Passed by the Yeas and Nays: 219 - 211 (Roll no. 95). (text: CR H1514) (Roll call 95)
2025-04-09: Passed/agreed to in House: On passage Passed by the Yeas and Nays: 219 - 211 (Roll no. 95). (text: CR H1514: 2) (Roll call 95)
2025-04-09: Considered as unfinished business. (consideration: CR H1532-1533)
2025-04-09: POSTPONED PROCEEDINGS - At the conclusion of debate on S.J. Res. 28, the Chair put the question on passage of the joint resolution and by voice vote, announced that the ayes had prevailed. Mr. Hill (AR) demanded the yeas and nays and the Chair postponed further proceedings until a time to be announced.
2025-04-09: The previous question was ordered pursuant to the rule.
2025-04-09: DEBATE - The House proceeded with one hour of debate on S.J. Res. 28.
2025-04-09: Rule provides for consideration of S.J. Res. 18, S.J. Res. 28, H.R. 1526 and H.R. 22. The resolution provides for consideration of H.R. 22, H.R. 1526, S.J. Res. 18, and S.J. Res. 28 under a closed rule. The resolution provides for one hour of debate on each measure and one motion to recommit on H.R. 22 and H.R. 1526, and one motion to commit on S.J. Res. 18 and S.J. Res. 28.
2025-04-09: Considered under the provisions of rule H. Res. 294. (consideration: CR H1514-1519)

Bill Versions

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". — issued 2025-04-11 — PDF (1 pages)
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". — issued 2025-03-05 — PDF (2 pages)
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". — issued 2025-02-27 — PDF (2 pages)
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". — issued 2025-03-04 — PDF (4 pages)