ICYMI: The Hill: Trump and Musk Business Affairs Emerge Over CFPB Takeover

New Reporting Outlines Just How Much Trump and Musk Stand to Benefit From Dismantling the CFPB

WASHINGTON, DC — Damning new details from the Hill revealed today that the Trump administration’s attacks on the Consumer Financial Protection Bureau (CFPB) not only interrupt employees’ efforts to put money back into the hands of Americans and protect them from predatory bank practices, but opens the door for Trump and Musk to further enrich themselves at the expense of millions of Americans. 

Per The Hill: 

“As Musk draws nearer to his goal of making X a payment platform, he has also become a leading force behind the Trump administration’s cost-cutting efforts, which have effectively gutted CFPB. As Musk zeroes in on the agency that oversees digital payment platforms, questions are swirling about how he could personally benefit from rolling back the CFPB’s oversight capabilities…

“‘The writing has been on the wall for a while in terms of Musk’s animosity for the CFPB — someone who has also been very clear about wanting to turn X into the everything app, the payments app, [and] the CFPB is the primary payments regulator at the federal level…’

“Under Biden-era Director Rohit Chopra, the CFPB finalized a rule in November that brought nonbanks offering digital payment apps under its supervision, giving the agency greater authority to oversee companies like Apple, Google, PayPal and Venmo… It also opened up comments on a proposed rule in early January about implementing the Electronic Fund Transfer Act, which aims to protect consumers against errors and fraud from digital payment mechanisms. The rule sought to apply the law to cryptocurrencies and stablecoins…

“Musk’s payment app ambitions come as financial technology has become an increasingly popular space, particularly among tech giants.

“A source familiar with the current CFPB teams’ work suggested halting regulations could make Musk more successful than his competitors in the financial technology space…

“Trump’s social media company, Trump Media & Technology Group, could also benefit from fewer regulations after it has moved toward entering the payment space.

“Trump Media filed a trademark application in November, weeks after the president won the 2024 election, for Truth.Fi, which is described as “cryptocurrency payment processing” and “credit and cash card payment processing services” in the application. Trump Media officially launched Truth.Fi in January, days after Trump’s inauguration and just before he fired Chopra.

“The watchdog group, Accountable.US, argued in a report obtained by The Hill that the CFPB’s January rule on the Electronic Fund Transfer Act would have impacted Trump Media’s Truth.Fi and that both Trump and Musk can dodge scrutiny of their payments systems with a CFPB takeover.

“Trump’s shares in Trump Media were estimated at $3.7 billion as of earlier this month. However, he transferred all of his shares into a revocable trust in December before taking office.”