Scott Bessent Appointed Acting Director Of CFPB Amid Regulatory Changes

According to Cointelegraph, U.S. Treasury Secretary Scott Bessent, recently confirmed by the Senate, has been appointed as the acting director of the Consumer Financial Protection Bureau (CFPB) following an order from U.S. President Donald Trump. This decision comes after Trump dismissed Rohit Chopra from the position. In a letter dated February 1, Chopra expressed his hope that his successor would address evidence related to law enforcement investigations involving Big Tech and Wall Street firms. The reasons behind Bessent's dual role, leading both the Treasury and the CFPB, remain unclear, especially as he has just assumed one of the most significant financial positions in the U.S. government. During his Senate confirmation process, Bessent aligned with many of the administration's stances on cryptocurrency, notably opposing the establishment of a U.S. central bank digital currency. The Trump administration has been reportedly considering measures to limit the authority of government agencies over banks, with Tesla CEO Elon Musk, an unofficial adviser to Trump, advocating for the elimination of the CFPB. President Trump has also issued an executive order on January 20, instructing all departments and agencies to pause any proposed rules, which could impact regulators such as the Securities and Exchange Commission (SEC), Commodity Futures Trading Commission (CFTC), and CFPB. With Chopra's departure, Trump has positioned several of his preferred candidates in key roles within U.S. financial regulatory bodies. SEC Commissioner Mark Uyeda is currently serving as acting chair pending the Senate's decision on Trump's nominee, Paul Atkins, while CFTC Commissioner Caroline Pham took over as acting chair from Rostin Behnam on the day of Trump's inauguration. The CFPB is currently embroiled in a lawsuit initiated by technology trade groups TechNet and NetChoice. The lawsuit challenges the bureau's rule to regulate payment apps and digital wallets similarly to banks. This rule, finalized in November 2024, appears to exclude cryptocurrency wallets and focuses solely on transactions conducted in U.S. dollars.