On February 9, Russell Vought, newly appointed head of the U.S. Consumer Financial Protection Bureau, directed the staff to halt all activities, including company supervision, as part of the administration's efforts to curb the agency's functions, as per a Reuters memo.
Vought, also announcing on Elon Musk's social media platform X, disclosed the agency's budget for the next quarter would be eliminated, citing sufficient funds exceeding $700 million.
Requests for comment by the Office of Management and Budget, overseen by Vought, and the CFPB remained unanswered. Vought advised the CFPB to discontinue public communications.
In his directive, Vought instructed staff to "cease all supervision and examination activity," surpassing prior actions by Treasury Secretary Scott Bessent, who had briefly managed the agency.
Established by Congress post the 2008 financial crisis, the CFPB oversees financial firms to prevent deceptive practices. Vought's decision removes federal oversight from a significant portion of financial activities.
Vought reiterated his stance on X, denouncing the agency's misuse against certain groups and industries. He declared, "This must end."
These recent developments were met with criticism from top Democratic lawmakers. Elon Musk, whose platform X aims to , has expressed intentions to undermine the CFPB, obtaining administrative access to the agency's IT systems, as confirmed by a source.
Dennis Kelleher, head of Better Markets, rebuked Trump for endangering consumers, particularly his supporters, by weakening financial regulations, calling it a betrayal toward Americans reliant on financial services.