Scott BESSENT HALTS OPERATIONS AT CFPB AS ACTING DIRECTOR

Treasury Secretary Halts Operations at Consumer Financial Protection Bureau

Treasury Secretary Scott Bessent has assumed the role of acting director of the Consumer Financial Protection Bureau (CFPB), swiftly moving to suspend a wide range of the agency’s activities. His appointment signals a potential shift away from the aggressive regulatory stance that defined Rohit Chopra’s tenure.

Bessent, who took over after President Donald Trump fired Chopra, has ordered the CFPB to cease all rulemaking, communications, litigation, and other operations, according to an internal email sent to staff on Monday and obtained by Bloomberg Law. The directive effectively puts nearly all bureau activities on hold, with only those required by law or explicitly authorized by Bessent allowed to continue

 “As Acting Director, Secretary Bessent is committed to appropriately stewarding the agency pending new leadership,” the email stated, emphasizing the need for regulatory consistency with the administration’s broader objectives.

A source within the CFPB, speaking on condition of anonymity, suggested that the directive has essentially shut down the agency for the time being. The move aligns with broader efforts by Elon Musk’s Department of Government Efficiency, which has pushed to dismantle certain federal agencies, including the U.S. Agency for International Development. Musk himself has publicly advocated for eliminating the CFPB, calling to “Delete CFPB” on his X social media platform.

Bessent, a former hedge fund manager, was confirmed as Treasury Secretary last week and is expected to pursue a sweeping economic agenda that includes tax cuts, deregulation, and trade rebalancing. His leadership at the CFPB marks a stark departure from the enforcement-heavy approach under Chopra, whose tenure saw billions of dollars in fines and consumer restitution imposed on major financial institutions such as Wells Fargo & Co., Goldman Sachs Group Inc., and Citigroup Inc.

The future of the CFPB remains uncertain as the administration continues to reshape the federal regulatory landscape.