A key federal watchdog, the Consumer Financial Protection Bureau (CFPB), is losing its power to oversee potential fraud and abuse in online payment platforms as Elon Musk’s site, X, enters the market. The CFPB was tasked with rooting out financial malfeasance and recently expanded its oversight to include digital payment apps like Venmo, PayPal, and Zelle.
However, after President Trump fired the CFPB’s former director, Rohit Chopra, and amid a broader government shake-up, Musk’s DOGE has sought to shut down the agency. The new CFPB chief, Russell Vought, enacted policies that slowed the agency’s operations before telling staff they didn’t need to come in.
Despite legal roadblocks, Republican lawmakers have sought to cut off the CFPB from monitoring online payments. A Senate resolution recently passed, which would roll back the CFPB rule giving it power over online platforms. The move is concerning given Musk’s influence and threat to use his fortune to “primary” lawmakers opposed to his agenda.
Democrats are pushing back against the GOP-led effort, including Senator Elizabeth Warren, who wrote to Acting Director Doug Collins questioning conflicts of interest involving Musk’s role in government. The CFPB has protected consumers from digital payment app fraud and collects proprietary information from the industry.
Conservative influencer Laura Loomer also voiced opposition to the attack on the agency, citing its role in preventing “debanking” – a phenomenon where financial institutions can blacklist individuals or businesses based on their views. Musk responded to Loomer’s concerns with a single word: “Really?”
Source: https://gizmodo.com/senate-votes-to-strip-cfpb-of-ability-to-regulate-platforms-like-x-2000572567