Bessent hits the breaks at CFPB

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Newly-confirmed Treasury Secretary Scott Bessent now has an additional federal agency to oversee, and he’s hitting the ground running. 

Bessent was named acting head of the Consumer Financial Protection Bureau yesterday after President Trump fired Rohit Chopra. Chopra, a Biden-era nominee, was known for his aggressive regulatory approach at the agency, which saw major fines against names including Wells Fargo and Citigroup. 

Now, Bessent has essentially put the CFPB on lockdown. 

Staffers are to halt any litigation, investigation or enforcement proceedings and refrain from issuing public statements. The effective dates for any previously approved rules will also be suspended, per a memo shared with Bloomberg. 

The switch-up was seen as particularly positive for the crypto industry, which was also a target under Chopra. The CFPB last month proposed expanding the agency’s electronic funds oversight to include cryptocurrencies. 

While the rule is unlikely to ever be finalized, we will note that even the existence of such a proposal could influence pending litigation matters. The language in the proposal could also be adopted by states, several of which already have almost identical electronic fund transfer regulations. 

The Trump administration has not yet nominated anyone to head the CFPB. It’s also unclear whether Bessent will hold the acting role until a permanent head is tapped.

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