The U.S. Consumer Financial Protection Bureau (CFPB) has proposed a new rule that may require crypto companies to reimburse users for losses caused by hacking.
CFPB's Protection Proposal
The CFPB has put forth a proposal requiring crypto firms to reimburse users for losses caused by hacks or exploits. This proposal aims to extend the protections of the Electronic Fund Transfer Act (EFTA) to cover digital assets, including stablecoins.
Hacking Incidents in 2024
In 2024, blockchain security firms such as Chainalysis reported 303 hacking incidents, resulting in the theft of $2.2 billion in digital assets. Notably, North Korean hackers were responsible for over $1.6 billion of these losses.
Extending Digital Asset Protection
Amid the rise in hacking and security breaches, the CFPB seeks to boost consumer protection in the evolving digital asset market. This expansion of the 'funds' definition would apply traditional consumer protections to new types of financial technologies.
Should this proposal be adopted, it could significantly alter the policies and add a layer of protection for those affected by crypto theft.
