Senator Pete Ricketts, US Senator for Nebraska | Sen. Pete Ricketts Official U.S. Senate headshot
Senator Pete Ricketts, US Senator for Nebraska | Sen. Pete Ricketts Official U.S. Senate headshot
On April 9, 2025, U.S. Senator Pete Ricketts (R-NE) expressed approval following the House's passage of his bicameral Congressional Review Act, aimed at overturning a recent Consumer Financial Protection Bureau (CFPB) rule. Representative Mike Flood (R-NE-01) led the legislation in the House while the Senate approved it on March 5. The resolution is now pending President Trump's signature.
The legislation introduced in February seeks to nullify the CFPB's rule "Defining Larger Participants of a Market for General-Use Digital Consumer Payment Applications," which was implemented on January 9, 2025. Senator Ricketts stated, "This is an early victory for President Trump. Our legislation overturns Biden-Harris overreach and eliminates barriers to innovation. It supports our job-creators. By cutting red tape, we’re helping President Trump deliver on his campaign promises. Thank you, Congressman Flood, for leading this in the House. I look forward to President Trump signing this common-sense legislation."
On November 21, 2024, the CFPB finalized this rule, extending its powers to new supervision and examination authority over nonbank entities designated as "larger participants" in the general-use digital consumer payment applications market. This includes a range of entities such as payment apps and peer-to-peer payment applications that facilitate at least 50 million consumer payment transactions annually.
The regulation has faced criticism for imposing excessive oversight on an already regulated industry. Critics argue that despite having minimal consumer complaints, the CFPB implemented additional regulations. This expansion of authority is described as unnecessary and potentially stifling to innovation, as these additional regulations could lead to fewer services and increased costs for consumers.
Furthermore, the cost-benefit analysis supporting the rule is challenged for underestimating costs, notably placing a CFPB exam cost at just $25,001.
The future of the legislation now lies with President Trump, awaiting his decision on the matter.
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