Cryptoassets, CBDC, Privacy top 2022 ETA public policy agenda
WASHINGTON — Jan. 7, 2022 — Today, the Electronic Transactions Association (ETA) released its 2022 policy priorities, highlighting the issues that are most relevant to ensuring that the digital payments industry is able to continue to provide efficient, secure payments services that benefit consumers.
“The digital payments industry is one of the most innovative, dynamic, competitive industries that exists today, leveraging a sophisticated, interconnected infrastructure to deliver financial products and services that benefit consumers, businesses, and the American economy,” said ETA CEO Jodie Kelley.
“As the voice of the digital payments industry, ETA looks forward to continuing to advocate before policymakers in Washington, D.C., across the 50 states, and in Canada to strengthen the ability of the industry to provide innovative, secure, and robust ways for consumers to receive, hold and spend their money.”
ETA’s 2022 public policy priorities include:
- Cryptoassets — Cryptoassets have the potential to change how commerce happens. An appropriate regulatory framework is essential if that potential is to be realized in a manner that protects consumers and fosters continuing innovation. That framework should not be prescriptive but should instead carefully consider the use to which the cryptoassets are being put to and tailor regulations to the risk profile presented.
Specifically, ETA supports public policies that advance the following five guiding principles, which we believe are critical to ensuring the appropriate regulatory balance is struck:
Properly Defining Cryptoassets
Tailoring Regulations to the Risk Profile of the Participant/Activity
Ensuring Consumer Protection
Harmonizing with Existing Regulatory Frameworks
Encouraging Responsible Innovation
For additional information, www.electran.org/wp-content/uploads/2021-ETA-5-Guiding-Principles-of-CRYPTO.pdf
- Central Bank Digital Currency (CBDC) – Central Bank Digital Currencies are being studied by governments around the world; in the U.S., policymakers and the Federal Reserve are actively considering the possibility of implementing a CBDC. Given that the existing payments system in the U.S. is safe, effective, dynamic, and efficient, ETA urges policymakers to move thoughtfully and deliberately in order to ensure there are no unintended consequences and that any CBDC would add value to the ecosystem.
Specifically, ETA supports public policies related to a CBDC that advance these seven guiding principles:
Provide the Right Tool for the Job
Ensure Private Sector Participation
Regulation Tailored to the Risk Profile of the Participant
For additional information, visit: www.electran.org/wp-content/uploads/2021-ETA-7-Guiding-Principles-of-CBDC.pdf
- Privacy – The payments industry has long been committed to protecting the privacy of consumers’ data. That commitment, along with the industry’s commitment to security, is at the core of the public’s trust in the industry. ETA supports a strong federal privacy standard that is principles–based to ensure predictability and consistency for consumers. Because privacy and security are intertwined, any privacy regime must also ensure that data can continue to be used to further the industry’s robust and effective fraud-protection efforts.
Additionally, ETA will focus on other significant public policy issues, including open banking; buy now/pay later (BNPL); artificial intelligence; patent reform; and tax issues; working to ensure that digital payments system – which includes robust consumer protection and innovation that allows consumers and businesses to move money securely and efficiently – continues to thrive.
A complete list of ETA’s priorities on the federal level, in the states, and in Canada can be found on these links.
The Electronic Transactions Association (ETA) is the world’s leading advocacy and trade association for the payments industry. Our members span the breadth of significant payments and fintech companies, from the largest incumbent players to the emerging disruptors in the U.S and in more than a dozen countries around the world. ETA members make commerce possible by processing approximately $22.5 trillion annually in purchases worldwide and deploying payments innovation to merchants and consumers. www.electran.org
Scott Talbott SVP of Government Affairs [email protected] 202-677-7403