Agency Suspension
, director of the , instructed the (CFPB) to halt all activities, including rule-making, investigations, and examinations, effectively shutting down the agency.
The CFPB, established post-2008 financial crisis to protect consumers, has been targeted by conservatives and is now under scrutiny for its role in financial oversight, with Vought zeroing out its funding for the next fiscal quarter.
Reactions and Implications
Critics, including of Better Markets, argue the move benefits Wall Street and Trump's allies, undermining consumer protection and potentially benefiting Musk's interests in the financial marketplace.
The shutdown has sparked protests from agency workers and condemnation from Democratic lawmakers, who see it as an attack on consumer rights and a step towards dismantling the CFPB.