The Consumer Financial Protection Bureau (CFPB) has taken a significant blow after its acting director, Russell Vought, ordered agency employees not to come into work or perform any tasks. This move comes as the bureau faces increasing scrutiny from President Donald Trump and tech billionaires like Elon Musk and Mark Zuckerberg.
According to reports, Vought notified the Federal Reserve that the CFPB will not receive its next draw of federal funding, citing that it is “not reasonably necessary” to carry out the agency’s duties. The website of the CFPB appears down, with a 404 error message, indicating that the agency may be operating in a reduced capacity.
Vought, who has been a vocal advocate for conservative policies, including Project 2025, took over as acting director after Trump and other tech titans began targeting the CFPB. The bureau’s union has condemned Vought’s move as an attempt to “attack union workers and defang” the agency, which is responsible for regulating payment providers.
The move has sparked criticism from Senator Elizabeth Warren, who warned that Vought is giving big banks and corporations a green light to scam families. Warren pointed out that the CFPB has returned over $21 billion to families cheated by Wall Street since its inception.
The CFPB’s actions have drawn ire from tech giants like Musk, who wants to “delete” the agency due to what he sees as duplicative regulatory agencies. Musk’s online payment system, X Money, is expected to debut later this year and may create competition with the CFPB.
Other billionaires, including Marc Andreessen and Mark Zuckerberg, have also spoken out against the CFPB, claiming it is “terrorizing” innovators in financial services. Republicans, meanwhile, are pushing for a bipartisan commission to oversee the CFPB, which they claim will help rein in its perceived excesses.
The CFPB was formed in 2011 as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act, aimed at regulating payment providers and protecting consumers. Its actions have repeatedly clashed with big banks, but despite Republican efforts to defund it, the agency remains operational.
Source: https://www.forbes.com/sites/saradorn/2025/02/10/trump-vs-cfpb-russ-vought-orders-consumer-financial-protection-bureau-to-stop-work