The weekend before President Trump’s historic second inauguration, all eyes turned to Washington’s first-ever “Crypto Ball.” Filled with prominent tech entrepreneurs and investors, the soiree celebrating the pro-crypto president’s victory even featured a performance by Snoop Dogg. Yet while the new administration and Congress’ more friendly approach to cryptocurrencies and artificial intelligence (AI) has seized headlines, little attention has been paid to a popular and oftentimes essential financial technology: digital payments.

Nearly every American today uses a digital payment platform in some shape or form. Whether it’s a direct deposit paycheck or splitting a dinner bill via Venmo, these tools have become ingrained in everyday life. And much like carrying cash in your purse or back pocket, sometimes these services are imperfect. If you don’t double-check the number or name you’re sending to, you might accidentally pay rent to the wrong person or request $100 from an unknown stranger. These mistakes are frustrating. That’s why platforms like Venmo offer double authentication and always include an “Are you sure?” type question before moving any money.
Yet in the eyes of the now-departed Biden administration, businesses’ clear attempts to minimize consumer negligence were not enough. Before the Trump team was sworn in, the Consumer Finance Protection Bureau (CFPB) under Director Rohit Chopra established new rules regarding oversight of digital payment platforms and sued JPMorgan Chase, Bank of America, and Wells Fargo for fraud incidents involving Zelle.
Rather than support financial firms through enforcement resources, the CFPB under Chopra chose to demonize American banks and technology companies as responsible for the mistakes of consumers.
While various fraud prevention tactics — including forms of oversight surveillance and identity authentication — would reduce incidents of mis-transferred money, the expansion of fruitless bureaucracy does not.
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