Chairman Carper Statement on CFPB Advisory on Digital Currencies

Washington – Today, Homeland Security and Governmental Affairs Committee Chairman Tom Carper (D-Del.) released the following statement on the Consumer Financial Protection Bureau’s (CFPB) consumer advisory regarding digital currencies:

“I am pleased that the Consumer Financial Protection Bureau (CFPB) issued an advisory informing consumers of the potential risks of bitcoin and other digital currencies,” said Chairman Carper. “Emerging technologies are often attractive to scam artists and criminals who use them to prey on uninformed or unsuspecting consumers. Importantly, today’s action brings the welcome news that the CFPB is getting more involved in consumer protection issues associated with digital currencies.  This notice will help give consumers some information they need to make more informed decisions when it comes to digital currencies. I’m also glad that the CFPB will begin accepting and responding to consumer complaints about digital currency businesses. As bitcoin and similar technologies see increased consumer adoption, I hope the CFPB and other relevant government stakeholders will continue to work together to provide adequate guidance and rules of the road for consumers and businesses.”

Last year, the Senate Homeland Security and Governmental Affairs Committee asked the Government Accountability Office (GAO) to examine the emerging regulatory, law enforcement, and consumer protection challenges associated with digital currencies and the extent to which federal agencies are addressing the emergence of this technology. Earlier this year, GAO released its report and found that while many federal financial regulatory and law enforcement agencies are working collaboratively together to address virtual currency issues, interagency working groups have largely ignored consumer protection issues. For a full copy of the most recent GAO report, click here.