Zelle case dismissal comes as CFPB larger participant rule faces CRA repeal

The Consumer Financial Protection Bureau’s decision to drop its lawsuit against three of the nation’s largest financial institutions over alleged security deficiencies in the digital payment platform Zelle elicited cheers from industry advocates and jeers from consumer advocates. The dismissal comes as Republicans in Congress seek to repeal the bureau’s larger participant rule, which allows the agency to exercise its statutory authority to supervise nonbank financial institutions.