Elon Musk called for a shutdown of the Consumer Financial Protection Bureau (CFPB) on social media Wednesday.
Musk is spearheading President-elect Donald Trump's efforts to reduce the size of the federal government. in post On X, formerly known as Twitter, Musk said the CFPB should be disbanded, arguing that the regulator overseeing potential future payments operations on Musk's X platform is redundant.
Delete CFPB. Too many overlapping regulatory authorities.
— Elon Musk (@elonmusk) November 27, 2024
Trump has advocated deregulation of the financial industry throughout his campaign, but did not specifically call for shutting down the CFPB, Politico reported. reported. President Trump has distanced himself from the Heritage Foundation's Project 2025, which recommended shutting down the CFPB, but his administration has continued to reduce the agency's regulatory scope and ease enforcement against companies, as seen in his first term. It is expected that this will happen.
In May, the Supreme Court dismissed a lawsuit that could have led to the CFPB's closure. In a 7-2 decision, the justices declared it legal for the CFPB to raise money directly from the Federal Reserve rather than through Congress, disappointing business groups that had objected to the funding method. (Related article: President John Kennedy tells Biden regulator head point blank that his government agency is “operating illegally'')
The controversy surfaced shortly after the CFPB enacted rules expanding oversight of large tech companies that provide payments and digital wallet services, and could impact Company X, which is expanding into the payments space, Politico reported. conveyed. Musk has expressed ambitions to evolve X into a “everything app,” including financial transactions.
“We are rapidly transforming the company from Twitter 1.0 to all apps,” Musk said. meanwhile Internal X Meeting October 2023.
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