Trump's CFPB Director Authority Cuts Funding, Suspends Some Oversight Activities

Trump's appointee Russell Vought actually dissolved the agency just days after taking over the CFPB.

Russell Vought, newly appointed by U.S. President Donald Trump as the head of the Consumer Financial Protection Bureau, stated that he has cut new funding sources for the agency and is said to have instructed staff to suspend all activities.

Vought said in a post on February 9 on X that: "I have informed the Federal Reserve that the CFPB will not withdraw the next unallocated funds as it is 'not really necessary' to fulfill its mission."

He added: "The current balance of the Bureau is $711.6 million, which is actually excessive in the current financial environment."

The agency was established to oversee financial companies such as banks and money transfer companies to prevent them from engaging in abusive and predatory practices, such as those that led to the 2008 financial crisis. The agency also handles complaints about U.S.-based cryptocurrency exchanges.

The CFPB is also a target of the cryptocurrency industry. In 2023, they proposed to oversee cryptocurrency wallet providers but were later forced to abandon this idea when finalizing regulations at the end of last year. However, tech trade groups sued the CFPB last month, alleging that the regulation is "an illegal power grab." #CFPB