As credit access and banking services increasingly flow to consumers through nonbank financial institutions, concerns have arisen that regulatory parity may lag next-generation technologies like stablecoins and artificial intelligence.
Despite the Consumer Financial Protection Bureau (CFPB) being the only federal agency authorized to supervise nonbanks, the bureau recently indicated it is shifting its supervisory focus away from nonbank sectors.
That hasn't sat well with Federal Reserve Governor Michael Barr, who oversees consumer protection and community affairs at the U.S. central bank.
Speaking at a National Community Reinvestment Coalition (NCRC) event Wednesday, Barr said a “strong partner” in the CFPB is essential for other federal ba...