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Maybe the problem is that they do not have jurisdiction to regulate these organizations, so the best they can do is issue warnings. That or it's regulatory cap
by nerdponx 3y ago
Maybe the problem is that they do not have jurisdiction to regulate these organizations, so the best they can do is issue warnings.
That or it's regulatory capture. Hard to say without knowing the details of relevant legislation and case law.
- kevin_thibedeau 3y agoThey really should force US Paypal to become a bank. Clearly that is workable for their European operations.
- chmod775 3y agoPayPal is already a bank in Europe, so it should be workable indeed.
- thephyber 3y ago"it should be workable" sounds suspiciously hand-wavy and sounds particularly naïve about law. EU and countries in the EU bloc are governed by completely different laws than the US (and the constituent states). This particular regulator (CFPB) is considered illegitimate by most Republicans (the bureau leadership has more independence from the Executive Branch than they would like) and is still fighting decade-long court cases to continue to exist. It's not clear how much actual authority this bureau has to force companies to do anything.
- dataflow 3y agoFor anyone curious: https://www.npr.org/2023/02/27/1159748990/supreme-court-cfpb https://www.npr.org/2023/02/27/1159748990/supreme-court-cfpb Decisions will likely come out in 2024.
- pharrington 3y agoIANAL, but I am quite sure that is not how our country works. The closest legal possibility to what you're talking about is the government buying PayPal and turning it into a bank, but that's not happening anytime in the foreseeable future.