Turbulence at CFPB: Bessent Freezes Activities

The U.S. Consumer Financial Protection Bureau faces uncertainty as acting director, Treasury Secretary Scott Bessent, halts activities under directives from President Trump. The move follows the dismissal of Director Rohit Chopra. The stoppage sparks debates on consumer protection and deregulation, signaling potential GOP efforts to control CFPB funding.

The Consumer Financial Protection Bureau (CFPB) has come to a standstill under the temporary leadership of newly appointed Treasury Secretary Scott Bessent, an acting director chosen by U.S. President Donald Trump. Bessent's tenure begins with the halting of all agency operations, including investigations and communications, sparking concern over consumer protections.

Bessent's appointment follows the removal of former Director Rohit Chopra, known for his stringent enforcement of consumer finance laws. Chopra's tenure saw significant confrontation with tech and banking sectors, particularly in areas like digital wallet oversight and credit card fees. Bessent's agenda aligns closely with Trump's goals, emphasizing economic deregulation.

The abrupt cessation of activities has drawn criticism, particularly from Senator Elizabeth Warren, a key architect of the CFPB. Warren argues the move undermines consumer interests, contradicting Trump's promises to reduce family costs. As Bessent takes his new role, concerns rise over Republican intentions to reshape the agency's funding structure.

(With inputs from agencies.)