The Consumer Financial Protection Bureau has proposed a rule requiring US cryptocurrency companies to refund customers who lost money due to hacks or unauthorized transactions.

The proposal aims to expand the consumer protections already in place for traditional bank accounts to include digital wallets used for cryptocurrencies. According to According to Financial Times reports.

The CFPB rule seeks to expand the scope of electronic funds transfer law to include digital assets such as stablecoins — crypto tokens designed to maintain a stable value — and other fungible tokens used for payments.

If adopted, the expansion would redefine “money” to include assets that serve as money or are used to pay for goods and services.

Cryptocurrency accounts, often referred to as wallets, allow users to store digital currencies and make transactions. Unlike traditional bank accounts, these wallets are not universally protected against losses due to hacking or fraud.

The CFPB's proposal would change that, requiring providers to compensate customers for stolen funds.

Encryption breaches

This proposal comes amid an increase in cryptocurrency hacking incidents. Blockchain analytics firm Chainalysis reported 303 cryptocurrency hacks in 2024, resulting in $2.2 billion worth of funds being stolen.

North Korean groups They were responsible For more than $1.6 billion of these losses, that is, doubling their theft from the previous year.

The CFPB's proposal represents one of the latest cryptocurrency-related initiatives from the Biden administration. However, its future remains as uncertain Incoming The Trump administration, which has shown strong support for the cryptocurrency industry, is preparing to take office.

Several Trump advisers, including Elon Musk and Vivek Ramaswamy, have publicly criticized the CFPB and called for it to be reduced or eliminated.

Public comments on the CFPB's proposal are open until March 31, after which the bureau will decide whether to issue a final rule.