CFPB likely to step back from crypto regulation —attorney

The Consumer Financial Protection Bureau (CFPB) volition apt spot a reduced relation successful crypto regulations arsenic different national agencies similar the Securities and Exchange Commission (SEC) and state-level regulators presume a bigger relation successful crypto policy, according to Ethan Ostroff, spouse astatine the Troutman Pepper Locke instrumentality firm.

"I deliberation with the existent administration, my consciousness is, we are highly apt to spot a important pullback by the CFPB successful the discourse of the enactment by different regulators," Ostroff told Cointelegraph successful an interview.

State regulators besides person the authorization nether the Consumer Financial Protection Act (CFPA) to presume immoderate of the regulatory roles of the CFPB, the lawyer said but besides added that immoderate regulatory functions volition proceed to autumn wrong the purview of the CFPB arsenic a substance of established law.

Ostroff cited the New York Department of Financial Services (NYDFS) and the California Department of Financial Protection and Innovation (DFPI) arsenic regulators to support an oculus connected arsenic imaginable leaders of crypto regulations astatine the authorities level.

However, the lawyer clarified that portion the CFPB whitethorn spot a diminished relation during the Trump administration, the bureau would not beryllium outright dismantled during the existent authorities owed to "statutorily mandated obligations and requirements" that necessitate acts of Congress to change.

Related: Elon Musk’s ‘government efficiency’ squad turns its sights to SEC — Report

Trump medication targets CFPB successful ratio push

The Trump medication targeted the CFPB arsenic portion of a broader propulsion by the Department of Government Efficiency (DOGE) to slash authorities spending and trim the national debt.

Russell Vought, the precocious appointed caput of the CFPB, announced large backing cuts to the bureau and scaled backmost operations wrong days of assuming the helm astatine the CFPB successful February 2025.

Source: Russell Vought

Massachusetts Senator Elizabeth Warren criticized Elon Musk for dismantling the CFPB, which the US legislator co-founded backmost successful 2007.

Warren characterized Musk arsenic a "bank robber" and claimed that the Trump medication dismantled the CFPB to undo user extortion rules and person greater power implicit the fiscal system.

In a February 12 interview with Mother Jones, the legislator stressed that the Executive Branch of authorities does not person the statutory authorization to afloat dismantle the CFPB, which tin lone beryllium done done Congressional approval.

Magazine: SEC’s U-turn connected crypto leaves cardinal questions unanswered