The work freeze by the bureau of consumer protection is putting big tech regulations on ice

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Consumer Law Enforcement and Supervision in the Light of Mark Paoletta’s Removal from the White House Office of Management and Budget (Omega)

The acting Director of the Consumer Financial Protection Bureau has stopped work in the last few days and that is when the directors of supervision and enforcement stepped down on Tuesday.

Before Halperin and Salas resigned, they were put on leave by Mark Paoletta, general counsel at the White House Office of Management and Budget, according to a CFPB employee familiar with the situation who requested anonymity because they are not authorized to comment. The reasons for Halperin and Salas being placed on leave was not known by NPR.

“The Bureau has been instructed to stand down. I don’t think it’s appropriate or lawful to stop all supervisionactivities and examinations, as I can’t serve as the SupervisionDirector now,” Salas wrote.

“I don’t believe in these conditions I can effectively serve in my role, which is protecting American consumers,” he wrote. “Since October 2021, we have secured orders for $9.5 Billion in penalties and redress for consumers. It has been an honor to serve with you.”

Decay of the Consumer Financial Protection Bureau as a result of a Trump Administration Prompt and a Fed-Trump Delay

The Consumer Financial Protection Bureau was formed in the wake of the 2008 financial crisis and is funded by the Federal Reserve. The bureau is an enforcement agency, and its supervisors monitor companies across the country to ensure they are following consumer protection rules.

The bureau has been the focus of a number of dramatic moves in the last few days, and has also been the object of disapproval by the Trump administration.

The DOGE team of Musk entered the headquarters of the CFPB and were given access to some of the systems. One of the executive orders created the Department of Governmental Efficiency.

Vought also instructed staff to cease doing the agency’s work, including supervision. On Sunday, agency employees were told that they would not be allowed to enter the Washington headquarters, since it would be closed for the week. On Monday, staff and contractors were told they couldn’t “perform any work tasks.”

Some lawsuits it has filed against banks like Bank of America are related to fraud in the country.

The Future of the CFPB Isn’t: Peer-to-Peer Payments are on Ice in the Moment

The CFPB passed a rule essentially defining this type of peer-to-peer payment company. The rule didn’t include any actual regulations for these companies, but defining them would be the first step toward doing so in the future. These companies have fallen into a regulatory grey zone.

With Donald Trump back in the White House, and Musk wanting to slash spending and eliminate entire agencies, the Future of the CFPB looks uncertain. Last Friday, a day after members of DOGE gained access to internal CFPB data, and hours before the homepage of the bureau website began displaying a 404 error message, Musk went on X and posted, “CFPB RIP 🪦.”

In late November, the CFPB took early steps toward regulating “non-bank” financial companies, which could include PayPal, Venmo, Apple Pay, Google Pay, and Zelle. It didn’t allow companies that focus onCryptocurrencies, such as Coinbase. Despite this, Gemini CEO Tyler Winklevoss and Coinbase CEO Brian Armstrong both celebrated the fact that the CFPB was being kneecapped.

“The CFPB can’t move those cases forward, so they’re basically on ice at the moment,” a former CFPB staffer tells WIRED, who was granted anonymity over fears of retaliation.