U.S. regulators plan to strengthen customer protections for cryptocurrency accounts

ChainCatcher News, U.S. regulators plan to strengthen customer protections for cryptocurrency accounts.

U.S. consumer banking regulators suggest that U.S. cryptocurrency companies should be responsible for refunds when customer accounts are hacked, aligning the standards for digital wallets with those of bank accounts.

The U.S. Consumer Financial Protection Bureau (CFPB) stated on Friday that it hopes to mandate service providers to compensate consumers who lose funds due to hacking or unauthorized transactions. This move by the CFPB will force digital asset companies to enhance security and reserves to address operational threats.
The CFPB is seeking to expand the scope of the Electronic Fund Transfer Act to protect customers from payment fraud. The agency aims to broaden the term "funds" to include any asset that "acts or is used like money." The proposal states that this would include stablecoins, cryptocurrency tokens similar to digital dollars, and "any other fungible assets in similar positions that serve as a medium of exchange or a means of payment for goods or services."