Lee Fang, an investigative journalist, said that the Consumer Financial Protection Bureau's (CFPB) proposed rule to prevent debunking and speech policing by financial institutions could spark a new front in the fight against censorship. The analysis was published in an article on January 14.
"The next fight over censorship could be against the banks," said Fang. "Take the example of PayPal, which briefly updated its customer contract in 2022 to fine users as much as $2,500 for posting 'misinformation.'"
The CFPB has finalized a rule to supervise nonbank companies offering digital payment apps that process over 50 million transactions annually. According to the agency, the rule focuses on ensuring compliance with federal laws regarding consumer privacy, fraud, and account closures. It allows proactive examinations and applies to transactions in U.S. dollars. The rule will take effect 30 days after publication in the Federal Register, as said in a news release by CFPB.
PayPal updated its Acceptable Use Policy in October 2022 to include fines of $2,500 per infraction for users who spread "misinformation," as determined at the company’s sole discretion. Reason.com reported that this move sparked widespread backlash due to concerns about "overreach" and "censorship," leading PayPal to backtrack and claim the policy update was an error.
The Securities and Exchange Commission (SEC), which works alongside the CFPB, filed a lawsuit against Binance.US in 2023. This action led to the company losing thousands of customers, billions in funds, and laying off 70% of its staff. CoinDesk reported that despite these challenges, Binance.US is rebuilding with plans to restore USD fiat services and reestablish banking relationships in the coming weeks.
Fang is an independent journalist specializing in investigative reporting on corporate and political misconduct. His work has led to significant legal actions and public scrutiny, including exposing government influence on social media and campaign finance violations. In 2023, he launched a Substack to publish independent, non-partisan journalism.
The CFPB is a U.S. government agency established in 2011 to oversee financial institutions and protect consumers from unfair, deceptive, or abusive practices. Some industry groups, such as the U.S. Chamber of Commerce, have expressed concerns that the CFPB's regulatory actions may overreach its statutory authority.
