The takeaway from the report and the Director's remarks is that the CFPB will likely seek expanded authority to regulate BNPL businesses.

There is some inherent irony in the fact that the U.S. regulators repeatedly criticize the limited availability of financial services to low-income individuals and simultaneously attack those firms that are providing such services. In fact, the report includes some good news about BNPL services, e.g., loan acceptance rates are up and profitability…

The White House framework associates digital assets with every major problem in the world (from cyber crime, to the proliferation of weapons of mass destruction, to drug trafficking, to the support of North Korea and 10 or 20 other problems as well). This does not suggest that the White House will be interested in supporting legislative or regulatory change that would allow developers of digital assets to mass market their products in the United States.

Given unlimited resources, the SEC under Chair Gensler would undoubtedly pick up the pace of rulemaking.  However, those subject to the SEC's rules do not have unlimited resources. It would be better for the markets and the economy if Mr. Gensler would prioritize.  

In mandating central clearing, regulators always insist that transactions in that product have now become safer. The real question is whether the markets  - including those products that are not centrally cleared - have become safer.

The problem with central clearing is that central clearing corporations can raise their margin requirements freely during times of stress. The margin they demand during a stress period may be generated by market participants selling off other…