**Senate Blocks Digital Payment Regulation, Supporting Market Competition**

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senate

2 months ago - Politics

Senate Blocks New Rule on Digital Payment Apps, Encouraging Free Competition

In a recent vote, the Senate decided to reject a new rule that would have changed how companies using digital payment apps are regulated. The resolution was passed with a narrow margin of 50 in favor and 47 against, mainly pushed by Senate Republicans who believe the new regulations would be too strict for businesses.

This blocked rule was designed to help identify larger companies in the digital payments market, like those used for daily transactions on smartphones. The goal of the rule was to ensure that these bigger companies treat customers fairly. However, the Senate argued that enforcing this rule would create unnecessary challenges for companies, especially smaller ones, and might slow down innovation.

By disapproving the rule, the Senate is allowing these digital payment businesses to operate without the added requirements that would have classified them based on how big they are. This means companies can develop new services and compete more freely in the market without worrying about strict government regulations.

According to supporters of the resolution, this decision will help promote innovation and growth in the digital payments area, making it easier for new companies to enter the market and compete with larger ones. They believe that removing these regulations will lead to a more dynamic environment where everyone can benefit from the advancements in technology.

In summary, the Senate's action to block the new rule about digital payment apps aims to create a more flexible and competitive marketplace, allowing businesses of all sizes to thrive without heavy restrictions.

This is a resolution passed by Congress. It disapproves a rule made by the Bureau of Consumer Financial Protection.

Key points:

  1. What the Rule Was About: The rule tried to define who qualifies as a "larger participant" in the market for digital payment apps that nearly everyone uses.

  2. What Congress Did: Congress decided that this rule should not be enforced. This means the rule won’t have any power or effect.

  3. Why This Matters: This action takes away regulations that could have affected digital payment apps used for everyday transactions, like buying things online or sending money to friends.

By blocking this rule, Congress aims to keep the market for digital payments more flexible and less restricted.

97 votes

Yes

50

No

47

Not Voting

3

  1. Presented to President.
  2. Motion to reconsider laid on the table Agreed to without objection.
  3. Passed/agreed to in House: On passage Passed by the Yeas and Nays: 219 - 211 (Roll no. 95). (text: CR H1514: 2)
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  4. On passage Passed by the Yeas and Nays: 219 - 211 (Roll no. 95). (text: CR H1514: 2)
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  5. Considered as unfinished business. (consideration: CR H1532-1533)
  6. POSTPONED PROCEEDINGS - At the conclusion of debate on S.J. Res. 28, the Chair put the question on passage of the joint resolution and by voice vote, announced that the ayes had prevailed. Mr. Hill (AR) demanded the yeas and nays and the Chair postponed further proceedings until a time to be announced.
  7. The previous question was ordered pursuant to the rule.
  8. DEBATE - The House proceeded with one hour of debate on S.J. Res. 28.
  9. Rule provides for consideration of S.J. Res. 18, S.J. Res. 28, H.R. 1526 and H.R. 22. The resolution provides for consideration of H.R. 22, H.R. 1526, S.J. Res. 18, and S.J. Res. 28 under a closed rule. The resolution provides for one hour of debate on each measure and one motion to recommit on H.R. 22 and H.R. 1526, and one motion to commit on S.J. Res. 18 and S.J. Res. 28.
  10. Considered under the provisions of rule H. Res. 294. (consideration: CR H1514-1519)
  11. Rules Committee Resolution H. Res. 294 Reported to House. Rule provides for consideration of S.J. Res. 18, S.J. Res. 28, H.R. 1526 and H.R. 22. The resolution provides for consideration of H.R. 22, H.R. 1526, S.J. Res. 18, and S.J. Res. 28 under a closed rule. The resolution provides for one hour of debate on each measure and one motion to recommit on H.R. 22 and H.R. 1526, and one motion to commit on S.J. Res. 18 and S.J. Res. 28.
  12. Rule H. Res. 282 failed passage of House.
  13. Rules Committee Resolution H. Res. 282 Reported to House. Rule provides for consideration of H.R. 22, H.R. 1526, S.J. Res. 18 and S.J. Res. 28. The resolution provides for consideration of H.R. 22, H.R. 1526, S.J. Res. 18, and S.J. Res. 28 under a closed rule. The resolution provides for one hour of debate on each measure and one motion to recommit on H.R. 22 and H.R. 1526, and one motion to commit on S.J. Res. 18 and S.J. Res. 28. The resolution also provides that H. Res. 23 and H. Res. 164 are laid on the table.
  14. Held at the Desk
  15. Received in the House
  16. Message on Senate action sent to the House.
  17. Engrossed in Senate

    This is a decision by Congress to block a rule that was created to define which companies are considered large in the market for digital payment apps.

    • Congress disapproves the rule from the Bureau of Consumer Financial Protection.
    • This rule was meant to determine "Larger Participants" in the digital payment market.
    • By blocking this rule, it will not take effect and will not change how these companies operate.
    • The Senate passed this decision on March 5, 2025.
  18. Passed Senate without amendment by Yea-Nay Vote. 51 - 47. Record Vote Number: 106.
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  19. Passed/agreed to in Senate: Passed Senate without amendment by Yea-Nay Vote. 51 - 47. Record Vote Number: 106.
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  20. Considered by Senate. (consideration: CR S1503, S1510-1511, S1520-1521)
  21. Placed on Calendar Senate

    This is a resolution that stops a rule from the Bureau of Consumer Financial Protection. The rule tried to define who counts as a big player in the market for digital payment apps.

    Here are the important details:

    • Congress decided that the rule will not be used at all.
    • This means that businesses that provide digital payment services won't have to follow this specific rule.
    • The resolution was introduced on February 27, 2025, and it was officially placed on the calendar for discussion shortly after.
    • About six senators, including Mr. Ricketts and Mr. Budd, supported this resolution.
    • The goal of the resolution is to remove the regulations that could have impacted how digital payment applications are run.
  22. Introduced in Senate

    This is a resolution passed by Congress. It disapproves a rule made by the Bureau of Consumer Financial Protection.

    Key points:

    1. What the Rule Was About: The rule tried to define who qualifies as a "larger participant" in the market for digital payment apps that nearly everyone uses.

    2. What Congress Did: Congress decided that this rule should not be enforced. This means the rule won’t have any power or effect.

    3. Why This Matters: This action takes away regulations that could have affected digital payment apps used for everyday transactions, like buying things online or sending money to friends.

    By blocking this rule, Congress aims to keep the market for digital payments more flexible and less restricted.