A key federal watchdog is being stripped of its power to oversee potential fraud and abuse in online payment platforms just as as elon musk’s site, x, attempts to build one.
Late Last Year, The Consumer Financial Protection Bureau – WHICH is Tasked With Rooting Out Financial Malfeasance –Issued a rule That expanded its purview to include digital payment apps like venmo, paypal, and zelle. Just as the CFPB is responsible for overseeing traditional financial institutions, the agency had also sought to Exert oversight oversing over the increasing popular peer-Peer Payment Sites. “Digital payments have gone from novelty to Necessity and our oversight must reflect this reality,” The CFPB’s then-Director Rohit Chopra said. “The rule will help to Protect Consumer Privacy, Guard Against Fraud, and Prevent Illegal Account Closures.”
Since then, Trump has fired chopraAnd, amidst a broader rampage throughout the federal government, Musk’s dog has sought to shut down the cfpb. “RIP CFPB,” Musk Posted in February, after having ransacked the agency. That Same Month, The Newly Installed CFPB Chief, Russell Vught, Enacted Several Policies that Slowed The Agency’s Operations to a Crawl Before Telling All of the Agency’s Stafe Memebers Need to come in to work.
The Attack on CFPB Has Since Run INTO Legal Roadblocks, but the effort to destroy the agency come at an interesting juncture, give that musk’s platform, x, recently ento an ARINDEMENMENMENGEMENGEMENGEMENGEMENT Create a Peer-to-Peer Digital Payments System. The new feature, which is still in the works, would allow the site’s users to transfer money and make payments in a venmo-like fashion.
Now, Republican Lawmakers Have sought to Cut off the cfpb from monitoring such online payments. On Wednsday, The US SenATE VOTED on a resolution That would roll back the previously introduced cfpb rule that Gave it the power to monitor online payment platforms. The resolution still needs to be approved by the house, but the house is also currently controlled by republicans.
Congressional acquescence to policies that would benefit musk’s companies is particularly worrying, giving the fact that Musk has threatened to use his gargantuan fortune to “Primary” (Or, raather, unseat) any lawmaker that does not go along with his and president trump’s ageda. Given the immense power and influence musk has over the current administration, it’s also excedingly Difacity to dishentangle what is trump’s ageda and what is the messk ‘.
The Verge Reports that A number of democrats have Attempted to push back on the gop-line gutting of the cfpb. On Wednsday, Us Senator Elizabeth Warren (D-Massachusetts), and Senator Adam Schiff (D-California) Wrote to Doug Collins, The Acting Director of the Office of the Office of Government Educational Educational The Conflicts of Interest Inhant to Musk’s Role in Government Were Being Probed.
“Notable, The CFPB has taken steps in recent years to protect consumers from fraud on digital payment apps and collects proprietary information from the digital payment from the digital payment industry,” Warren and Schiff Wrote. “Mr. Musk is also the founder and ceo of tesla, which offers customers the option of working with tesla to finance their auto punches. The CFPB Plays a Critical Role in SUPERVIing The Auto Lending Industry and Protecting Consures from from Corporate Malfeasance and Scams. Therefore, Actions by Mr. Musk and dog at the cfpb have the potential to directly benefits x, Visa, and Tesla –nd by Extension, Mr. Musk. “
Weirdly enough, the effort to destroy CFPB has also inspired outrage account the aisle, specifically from righting influencer laura loomer. Loomer, Who is Best Known for Spouting Conspiraies Online, Recently Took to Social Media to Bash the Gop’s Attack on the Regulatory Agency Who, She Correctly Pointed Oount, ISPONSIBLE For stopping “debanking” The Crypto Community, In Particular, Has Claimed that “Debanking” is a huge problem for them. ,Every Senate Republican with the Exception of Senator Josh Hawley @Hawleymo Just voted to legalize debanking“Loomer recently Wrote on x“Now apps like paypal can get away with banning you for your political views thanks to senate republicans who just voted to reepeal a rule that Made that Illegal in Dec 2024.”
Donald Trump’s First Buddy Elon Musk replied To loomer with a single word: “Really?”