Scott Bessent, newly confirmed Treasury Secretary, now oversees an additional federal agency. He is already on the job.
Bessent, a nominee of Biden’s era, was appointed acting head yesterday by the Consumer Financial Protection Bureau. President Trump had fired Rohitchopra. Chopra is a Biden nominee who was well-known for the aggressive approach he took to regulation at the Consumer Financial Protection Bureau. This led to major fines being levied against Wells Fargo and Citigroup.
Bessent is now essentially putting the CFPB under lockdown.
All staff are asked to cease all litigation, investigations or enforcement procedures and refrain form making any public statements. Bloomberg received a memo that stated the effective dates of any rules previously approved will be suspended.
This switch was seen to be particularly beneficial for the crypto-industry, which had also been a targeted industry under Chopra. The CFPB, last month, proposed expanding its oversight of electronic funds to include cryptocurrencies.
Although the final rule is unlikely, even its existence could have an influence on litigation that has already been filed. This proposal’s language could be adopted also by the states. Several of them already have electronic funds transfer laws that are almost identical.
Trump’s administration has yet to nominate anyone as the head of the CFPB. Bessent may also hold an acting position until a permanent leader is appointed.
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