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"CFPB RIP" Trump claims CFPB destroys people. Senators say killing it is a gift to Musk. Trumps efforts to shutter the CFPB sparks demand for Elon Musk ethics probe. Ashley Belanger Mar 6, 2025 12:59 pm | 36 The US Consumer Financial Protection Bureau (CFPB) headquarters in Washington, DC, US, on Sunday, Feb. 2, 2025. Credit: Bloomberg / Contributor | Bloomberg The US Consumer Financial Protection Bureau (CFPB) headquarters in Washington, DC, US, on Sunday, Feb. 2, 2025. Credit: Bloomberg / Contributor | Bloomberg Story textSizeSmallStandardLargeWidth *StandardWideLinksStandardOrange* Subscribers only Learn moreOn Wednesday, the Senate voted to block the Consumer Financial Protection Bureau (CFPB) from monitoring digital payments companies for fraud and privacy concernswhich Democratic lawmakers Elizabeth Warren and Adam Schiff said gave Elon Muska "get out of jail free card."The vote advanced a proposed joint resolution to the House of Representatives that "disapproves" of a final rule Republicans introduced last year that was supposed to bring consumer protection regulation of digital payments companies in line with traditional financial institutions.At that time, lawmakers were concerned about tech companies spying on consumers' transactions, preventing valid transaction disputes over incorrect or fraudulent money transfers, and other potential harms to consumers "when they lose access to their app without notice or when their ability to make or receive payments is disrupted."But now, Republicans claim the rule "unnecessarily expands the CFPBs authority" and creates "barriers to innovation" in the digital payments world. Additionally, Trump has claimed that the CFPB has been "politicized," Reuters reported.Warren and Schiff alleged in a letter to the Office of Government Ethics (OGE) Secretary Doug Collins that Musk has "clear conflicts of interest" that seemingly no one has investigated despite federal ethics laws.As a "special government employee" serving as a senior advisor to Donald Trump, Musk stands to "directly benefit" financially from Trump's efforts to dismantle the CFPB using the Musk-steered Department of Government Efficiency (DOGE), the senators wrote. The CFPB supervises the auto loan industry, impacting Musk's car company Tesla, and seemingly more concerningly, would have monitored fraud on X Money, the digital payments service Musk intends to launch this year on X."A vote in favor of this resolution is a vote to strip federal oversight of Elon Musks payments company," Sen. Jack Reed (D-R.I.) tried to warn lawmakers in a losing argument ahead of the Senate vote, The Verge reported."If Mr. Musk has taken actions in his federal role that will benefit his financial interests without receiving appropriate waivers and approvals, he may have violated the criminal conflict of interest statute," the senators alleged. That ethics law, they said, "prohibits special government employees from participating "personally and substantially" in any particular matter that would have a "direct and predictable effect" on his or her financial interest, they said.So far, the senators said, the Trump administration has only given vague assurances of Musk's and DOGE's compliance with ethics laws. It also remains unclear how much of DOGE remains under Musk's control, they alleged.Their attempts to request this information from Treasury Secretary Scott Bessent and Acting CFPB Director Russ Vought have been ignored, and now they're calling on the OGE to fill its "critical role" as an "independent arbiter and enforcer of the federal criminal conflict of interest statute and other ethics rules," they said.They've asked Collins for a "robust response" by March 12 to questions probing Musk's compliance with ethics laws, his involvement at DOGE, and DOGE's overall regulatory compliance. For transparency, the senators also want all communications between OGE, the White House, the Executive Office of the President, and Musk, as well as details on any contact the CFPB and the Treasury Department have had with OGE about Musk's and DOGE's compliance.Whether Collins will respond robustly seems up in the air. The senators expressed concerns that the OGE's independence may be compromised since Collins is an apparent Trump ally."The Presidents decision to place a political ally at the head of OGE raises significant concerns about OGEs independence and undermines trust in the OGE as an impartial, apolitical ethics arbiter," the senators wrote.Trump accused the CFPB of destroying people"CFPB RIP," Musk posted on X after DOGE secured a stop-work order at the CFPB, the senators noted in their letter, urging the OGE to recognize Musk's social media posts as evidence of alleged conflicts of interest.Warren and Schiff warned the OGE that "more than three-quarters of Americans have used" digital payments platforms, "with fraud rapidly increasing." The CFPB could be the only defense that consumers have to claw back money lost to scams targeting digital payment platforms, they suggested, with the agency helping "millions of consumers" reclaim $21 billion from bad actors."Efforts to shut down the CFPB are dangerous and are particularly costly for people whose claims of illegal foreclosures, car repossessions, or debanking are currently under investigation by the agency," the senators alleged.The CFPB has already begun closing cases, Reuters reported last month. One major case was probing if Capital One cheated customers out of $2 billion in interest payments. Others alleged consumer harms from illegal student loan or mortgage schemes.Potentially, the CFPB could have interfered with Musk's proclaimed plan to turn X into a bank where a user could live their "entire financial life," including supposedly one day getting loans and access to high interest savings accounts."If it involves money, itll be on our platform," Musk said last year. "Money or securities or whatever. So its not just like 'send $20 to my friend.' Im talking about, like, you wont need a bank account."So far, Musk has run into regulatory hurdles that are seemingly delaying X Money's launchwhile potentially eyeing cryptocurrency as a non-traditional bank path to enable digital payments. It's easy to see how digital payment companies running like a bank under looser regulations than regular banks might be more competitive or take more risks to innovate the payments landscape. What's harder for the senators to see is how consumers will be protected in such a seemingly lawless realm.But while some believe that Musk is behind Trump's push to kill the CFPB, Trump has claimed that he wants the CFPB gone because it "was set up to destroy people," American Banker reported. It's hard to say what Trump means by this, but he claimed that "before I ever heard" of the CFPB, "people would come up to me in the Midwest and areas and say, 'Sir, I'm being destroyed by them.'"It could be that Trump is referring to the CFPB's public database of complaints, which Republicans and industry groups criticized in 2017 as being "potentially misleading and incomplete," an AP News report said.Companies' reputations were damaged without proof, critics claimed, since the CFPB doesn't verify complaints. On the other hand, the Consumers Union argued that the database increased transparency and allowed consumers to "reach their own conclusions" about financial institutions, AP News reported.Currently, the database logs a little more than 8 million complaints, with the number of complaints gradually rising in 2024 to around 360,000 before a sharp dip in February 2025.Trump also appears to be attacking the CFPBwhich Warren createdas part of his ongoing feud with the senator, ranting about Warren while delivering his remarks, American Banker reported. Officially, Trump has claimed that the CFPB must go as part of DOGE's efforts to reduce government "waste, fraud and abuse," while downplaying Musk's leadership role at DOGE. Speaking of the CFPB in the past tense, he seems to think it's a foregone conclusion that the agency will shutter, American Banker reported."We did the right thing," Trump said. "That was a very important thing to get rid of, and it was also a waste. I mean, number one, it was a bad group of people running it, but it was also a waste."However, it's up to Congress to abolish the CFPB, and currently, CFPB Acting Director Vought and DOGE are litigating two lawsuits from the National Treasury Employees Union trying to unfreeze the CFPB. Republicans control Congress, though, so Schiff and Warren don't seem to be relying on pushback in the House, instead hoping an ethics probe might spare the bureau from DOGE's chopping block.Ashley BelangerSenior Policy ReporterAshley BelangerSenior Policy Reporter Ashley is a senior policy reporter for Ars Technica, dedicated to tracking social impacts of emerging policies and new technologies. She is a Chicago-based journalist with 20 years of experience. 36 Comments