Digital payment platforms like CashApp and Venmo would be regulated like traditional financial institutions, under a proposed federal rule. North Carolina Attorney General Josh Stein supports the effort.
According to the Consumer Financial Protection Bureau, more than three-quarters of adults in the US use CashApp, PayPal, and other platforms to send money to other people.
The bureau says accounts on these apps are not insured. That means if a payment company fails, consumers could lose their money.
Stein, who is also a Democratic candidate for Governor, has joined attorneys general in more than a dozen states in supporting the CFPB's proposed regulations.
The Electronic Transactions Association, a payment industry trade group, says it's in favor of "consumer protection and consistent application of public policy for all players."
A final rule could be issued later this year.