Treasury Secretary Scott Bessent Suspends CFPB Activities
U.S. Treasury Secretary Scott Bessent, newly appointed as the acting consumer finance watchdog under President Donald Trump, has halted all pending activities within the Consumer Financial Protection Bureau (CFPB). This includes investigations, rulemaking, litigation, and public communications, according to an email obtained by Reuters.
Bessent's Day One directive signals a significant policy shift under the Trump administration, which has emphasized deregulation and support for industry. As both Treasury Secretary and CFPB leadership, Bessent replaces former CFPB Director Rohit Chopra, known for his aggressive enforcement and regulation during the previous administration.
In an email sent at 11 a.m. local time, Bessent instructed CFPB staff and contractors to cease all activities, stating, "to promote consistency with the goals of the administration." Attorneys for the agency have also been directed to seek postponements in ongoing court proceedings.
Senator Elizabeth Warren, a key architect of the CFPB in the wake of the 2008 financial crisis, has criticized the move, calling it "an invitation to predatory corporate misconduct." She further stated that suspending CFPB enforcement actions "is at odds with President Trump's claim that he wants to lower costs for families."