Senior CFPB Official Exits, Claims Bureau Has No Will to Enforce Consumer Law Under Trump

The US Consumer Financial Protection Bureau’s (CFPB) acting enforcement director, Cara Petersen, has reportedly resigned, delivering a scathing critique of the Trump administration’s actions in a sharply worded farewell email.

Petersen accused the administration of systematically undermining the agency’s mission, citing sweeping changes that have made it “nearly impossible” to protect consumers.

Among the most alarming, she noted, was an attempt to eliminate 90% of the agency’s enforcement staff—an overhaul she claims cripples the CFPB’s ability to ensure financial products and services remain transparent, fair, and competitive.

Her email reads:

“I have served under every director and acting director in the bureau’s history and never before have I seen the ability to perform our core mission so under attack. It has been devastating to see the bureau’s enforcement function being dismantled through thoughtless reductions in staff, inexplicable dismissals of cases, and terminations of negotiated settlements that let wrongdoers off the hook.”

CFPB Shake-Up Raises Red Flags for Crypto Oversight

The CFPB was established in response to the 2008 financial crisis to regulate financial institutions—including money transfer companies—and to protect consumers from abusive and predatory practices.

It also handles complaints related to US crypto exchanges, making its role critical in an industry still plagued by fraud and scams.

A weakened CFPB risks reduced oversight and greater uncertainty for the crypto sector, where regulatory clarity remains crucial.

The agency’s dismantling fits into a broader pattern of regulatory unpredictability under President Donald Trump, echoing his inconsistent tariff policies that have left many US-based crypto mining firms struggling to navigate operational and supply chain challenges.

Peterson stated:

“[Trump] has no intention to enforce the law in any meaningful way.”

The CFPB has long been a point of contention: many Republicans argue it holds excessive power with limited oversight, while Democrats see it as vital for consumer protection and market regulation.

In a related development, Russell Vought, Trump’s Office of Management and Budget director, dropped major enforcement actions against Walmart and Capital One—moves widely interpreted as a retreat from corporate accountability and a weakening of consumer safeguards.

Meanwhile, a federal appeals court in Washington, D.C., is reviewing whether the Trump administration can overturn an injunction limiting the CFPB’s authority to dismiss most of its staff.

In mid-April, between 1,400 and 1,500 CFPB employees received termination notices amidst broader government downsizing efforts.

However, Judge Amy Berman Jackson temporarily blocked these layoffs, preserving a degree of stability within the agency.