After taking over as acting CFPB director, U.S. Treasury Secretary asks staff to stop litigation, investigation or enforcement proceedings

Odaily Planet Daily News Crypto-friendly U.S. Treasury Secretary Scott Bessent quickly got to work after taking on the role of acting director of the U.S. Consumer Financial Protection Bureau (CFPB). Now, Bessent has essentially put the CFPB on lockdown. Staff will cease any litigation, investigations, or enforcement proceedings and avoid making public statements. According to a memo, the effective date of any previously approved rules will also be suspended. The shift is seen as particularly beneficial to the crypto industry, which was also a target of former CFPB Director Rohit Chopra. The CFPB proposed last month to expand the agency's electronic funds regulation to cryptocurrencies. While the rule is unlikely to be finalized, even the existence of such a proposal could affect pending litigation matters. The wording in the proposal could also be adopted by states, several of which already have nearly identical electronic funds transfer regulations. The Trump administration has not yet nominated anyone to serve as CFPB director. (Blockworks) Yesterday's news that US Treasury Secretary Scott Bessent is currently serving as the acting director of the US Consumer Financial Protection Bureau (CFPB) indicates that the Trump administration may shift the strict law enforcement and regulatory approach under Rohit Chopra. Chopra was previously fired by the Trump administration. The Biden-era official imposed billions of dollars in fines and consumer compensation on banks such as Wells Fargo, Goldman Sachs and Citigroup during his tenure.