CFPB Seeks to Narrow Scrutiny of Nonbanks After Google Fight

The Consumer Financial Protection Bureau is looking to limit its supervision of nonbank financial companies posing a risk to consumers after dropping a Biden-era order against Alphabet Inc.'s Google Payment Corp.

The CFPB’s authority would be limited to conduct that presents a “high likelihood of significant harm to consumers” and is directly connected to a consumer financial product or service offering under a proposed rule published Tuesday in the Federal Register.

The CFPB seeks comment on the new standard and whether “risks to consumers” must be potential violations of law to fall under the agency’s ambit.

“Congress would not have ...