Block CEO Jack Dorsey, who started Twitter and entered the blockchain industry splendidly, is expected to be investigated by U.S. financial authorities.
On the 20th (local time), Block CEO Jack Dorsey was found to be under investigation by the Consumer Financial Protection Bureau (CFPB) in connection with Cash App, an online investment-linked finance (P2P) payment service.
The CFPB said Block did not submit the data requested in August 2020 and August last year, and is investigating the status of complaints and disputes on the Cash app.
In this regard, the CFPB filed a petition with a federal court and asked for approval to force an investigation into the cache app.
Recently, the U.S. CFPB is focusing its efforts on expanding supervisory authority for cryptocurrency companies, blockchain operators, and related businesses.
In April, the CFPB announced that it would expand its supervisory authority related to cryptocurrency based on the Dodd-Frank Act, a broad financial reform law that took effect in 2010.
In addition, Rohit Chopra, director of CFPB, said that cryptocurrency regulations could be changed this year.
The Dodd-Frank Act was implemented by the Obama administration to prevent the recurrence of the 2008 financial crisis.
It applies Volker Rules, which separate the roles of commercial banks and investment banks, to limit investment banking operations and strengthen supervision of financial holding companies and payment settlement systems.
The CFPB said, “The bill gave the CFPB the authority to supervise non-banks related to consumer-facing financial services based on potential risks. All non-banking businesses with reasonable reasons that are judged to pose a risk to consumers apply here. For example, it is a fintech and cryptocurrency-related company, he said. “There is no need for additional administrative procedures because the bill has already given authority to the CFPB.” The authority will be applied within 30 days.
Earlier, U.S. Senator Elizabeth Warren said in a local interview that the CFPB should crack down on cryptocurrency abuse in the market.