Update on Capitol Hill: Cybersecurity and CFPB Legislation; New Technology Task Force

A recap of activity on the Hill for the accounts receivable management industry.

5/17/2019 7:30 AM

Update on Capitol Hill: Cybersecurity and CFPB Legislation; New Technology Task Force

Lawmakers in the 116th Congress recently advanced several efforts related to oversight of regulators and technology in the accounts receivable management industry.

A group of Republican senators, led by U.S. Sen. Ted Cruz, R-Texas., reintroduced the “Repeal CFPB Act” (S. 1335) to eliminate the bureau.

Co-sponsors include U.S. Sens. Mike Lee, R-Utah; Jim Inhofe, R-Okla.; Ben Sasse, R-Neb.; Mike Rounds, R-S.D.; Marsha Blackburn, R-Tenn.; and Rand Paul, R-Ky.

Cruz and several of the co-sponsors are also in support of the CFPB Accountability Act of 2019, reintroduced by U.S. Sen. David Perdue, R-Ga., that would require bureau funding through the congressional appropriations process, ACA International previously reported.

From ACA International’s perspective, the association has supported several pieces of legislation that would create a five-member, bipartisan commission at the bureau and transfer its funding from the Federal Reserve system to congressional appropriations, among other changes.

In other legislative news, U.S. Sen. Elizabeth Warren, D-Mass., introduced a bill, S. 1336, to create an Office of Cybersecurity at the Federal Trade Commission.

The office would allow for supervision of data security at consumer reporting agencies and require the promulgation of regulations establishing standards for effective cybersecurity at consumer reporting agencies. The bill is cosponsored by U.S. Sen. Mark Warner, D-Va.

Meanwhile, House Financial Services Committee Chairwoman Maxine Waters, D-Calif., has established at Task Force of Financial Technology and a Task Force on Artificial Intelligence.

“As new technologies emerge and the financial services industry puts those technologies to use, Congress must make sure that responsible innovation is encouraged, and that regulators and the law are adapting to the changing landscape to best protect consumers, investors and small businesses” Waters said in a news release.

U.S. Rep. Stephen Lynch, D-Mass., will lead the financial technology task force and U.S. Rep. Bill Foster, D-Ill., will lead the artificial intelligence task force.

“The new task forces on financial technology and artificial intelligence, under the leadership of Congressman Lynch and Congressman Foster, respectively, will help Congress to stay on top of new developments in these areas so that we are well-positioned to make policy,” Waters said.

The Task Force on Financial Technology will examine issues including:

  • Regulating Fintech: Domestic and International Perspectives
  • Fintech Lending and New Inputs: Utilizing Alternative Data for Loan Underwriting and Modifications
  • Fintech and Consumers: Assessing the Infrastructure and Legal and Regulatory Framework for Efficient Payments
  • Fintech and Big Data: Reviewing Challenges to Data Privacy
  • The Task Force on Artificial Intelligence will examine issues including:
  • Applications of machine learning in financial services and regulation
  • Algorithms and Big Data: emerging risk management perspectives
  • Artificial intelligence, Digital Identification Technologies and Combatting Fraud
  • Automation and its impact on jobs in financial services and the overall economy

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