Frank Proposes Second Payments System Protection Act
In the United States, Congressman Barney Frank has introduced a second version of his Payments System Protection Act, which would direct the Department of the Treasury and Federal Reserve System, in consultation with the Attorney General, to create a formal process to define what types of online gambling are unlawful.
The Massachusetts Democrat stated that the legislation would make it possible for the US financial services industry to comply with the current ban on online gambling under the Internet Gambling Enforcement Act (UIGEA) of 2006. He revealed that he drafted the proposals following concerns raised by the financial services industry regarding the burden and ambiguity in the proposed rules implementing UIGEA.
Frank is the Chairman of the influential House Committee on Financial Services and the Payments System Protection Act would require Federal regulators to appoint a special Administrative Law Judge to define unlawful Internet gambling activities and conduct an economic impact study on the costs of compliance.
“Chairman Frank is doing the right thing by saying it is unfair to burden US financial service companies with the job of the Internet gambling police at a time when their undivided attention ought to be on the economy,” said Jeffrey Sandman, Spokesperson for the Safe and Secure Internet Gambling Initiative.
“The reality is that UIGEA is dangerous to the payments system and unlikely to stop anyone from using the Internet to play poker, bet on horses or engage in other types of wagering.”
Frank introduced a version of this legislation earlier this year in co-operation with Republican Representative Ron Paul of Texas but the bill, along with an amendment offered by Republican Representative Peter King of New York, was defeated in the House Committee on Financial Services and never made it to a full vote.