CFPB’s top enforcer exits with scathing email on Trump: Report

The US Consumer Financial Protection Bureau’s top enforcement official has reportedly resigned, accusing the Trump administration of undermining the agency’s mission in a fierce farewell email.

The agency’s acting enforcement director, Cara Petersen, said in the emailseenby Reuters on Tuesday that the Trump administration’s overhaul of the CFPB — including attempts to cut 90% of its workforce — has made it nearly impossible to fulfill its mission of ensuring financial products are transparent, fair and competitive for consumers.

“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,” Petersen’s email read.

Dismantling CFPB could affect crypto

The CFPB was created in the wake of the 2008financial crisisto regulate financial companies, such as money transfer firms, to stop them from abusive and predatory practices.

It also takes on complaints about US crypto exchanges and a weakened CFPB could lead to less oversight and more uncertainty in the crypto industry, wherefraud and scamscontinue to run rampant.

The dismantling of the CFPB is reflective of a broader pattern of regulatory unpredictability under President Donald Trump — similar to his back-and-forthtariff policies,which have left many US-based crypto mining companies in the dark,unsure of how to plantheir operations and manage supply chain risks.

Trump “has no intention to enforce the law in any meaningful way,” Peterson said.

GOP, Dems split on CFPB’s effectiveness

Many Republicans have long considered the CFPB to wield excessive power with insufficient oversight, while Democrats broadly view the department as essential for protecting consumers and regulating financial markets.

Related:Trump’s CFTC pick calls blockchain a society-shaping technology

The Trump-appointed Office of Management and Budget director Russell Vought also dropped major cases against Walmart and Capital One — a move arguably signaling a retreat from corporate accountability and a weakening ofconsumer protections.

Legality of Trump’s move still in the balance

A federal appeals court in Washington DC is reviewing whether the Trump administration can overturn a court injunction that limits the CFPB’s ability to fire most of its staff.

Between 1,400 and 1,500 CFPB staff were issued termination notices in mid-April as a broader part ofTrump’s government downsizingefforts. However, Judge Amy Berman Jackson intervened, temporarily blocking the layoffs.

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