Musk’s Attack on Consumer Agency Has a Darker Motive – Find Out Why!

The Trump administration’s aggressive stance against the CFPB is ongoing.

President Donald Trump’s newly appointed acting director of the Consumer Financial Protection Bureau, Russell Vought, issued a directive on Saturday evening that effectively shut down most of the agency’s operations. This action not only serves the interests of the financial sector and major Wall Street banks but also appears to significantly benefit billionaire Elon Musk, the richest man in the world, who has a substantial stake in seeing the CFPB weakened.

Vought, a staunch conservative and the leader of the anti-government initiative Project 2025, who also currently oversees the influential Office of Management and Budget, confirmed his takeover of the bureau in a staff email. He ordered employees to put a halt to the majority of their activities.

“Musk is trying to manipulate government policies to enrich himself. This represents a stark conflict of interest.” —Sen. Ed. Markey

As per NBC News, which accessed the email,

Staff were told to “stop all supervisory and examination activities,” “end all engagement with stakeholders,” freeze all ongoing investigations, refrain from any public statements, and put a hold on “enforcement actions.”

Vought further instructed employees not to “approve or issue any proposed or final regulations or any formal or informal guidance” and to “postpone the effective dates of all final regulations that have been issued or published but have not yet taken effect,” among other listed actions in the email.

He stated that these directives take effect immediately, except in cases where he grants an exemption or if a particular activity is legally required.

The CFPB has long been a target of Republican criticism, particularly regarding its unique funding structure, which is provided by the Federal Reserve rather than through the traditional congressional appropriations process. This funding method was designed by Congress at the inception of the CFPB to protect it from political pressures and has survived multiple legal challenges, even one that reached the U.S. Supreme Court last year.

Sen. Elizabeth Warren (D-Mass.), who played a crucial role in the establishment of the CFPB, commented that Vought’s orders clearly reflect the Trump administration’s objectives.

“Vought is essentially giving corporations and big banks the go-ahead to exploit consumers,” Warren stated on Saturday. “The Consumer Financial Protection Bureau has reclaimed over $21 billion for families deceived by Wall Street practices. Republican attempts to dismantle it through Congress and the courts have failed and will continue to fail.”

In a public statement, Vought also informed Federal Reserve Chairman Jerome Powell that the CFPB would be requesting $0 for its upcoming budget period, asserting that no additional funds were necessary for its operations.

“The Bureau’s current reserve of $711.6 million is excessive under the present fiscal conditions,” Vought argued. “This source of funding, which has long contributed to the CFPB’s lack of accountability, is now being shut off.”

Critics highlight that Musk, appointed by Trump to lead the Department of Government Efficiency (DOGE), faces significant conflicts of interest due to the administration’s actions against the CFPB.

Though DOGE is not officially recognized and claims broad authority over the internal affairs of federal agencies, it has sparked numerous legal challenges. Additionally, the prior acting director of the CFPB, Treasury Secretary Scott Bessent, issued a similar internal halt on operations last week, which was met with opposition from Democratic legislators.

On Friday, as reported by Common Dreams, Musk openly mocked the CFPB on social media, posting “CFPB RIP” alongside an image of a tombstone. Critics argue that his hostility stems not just from his ideological stance but also from personal business interests.

Appearing on MSNBC on Saturday, Lindsay Owens, executive director of the progressive organization Groundwork Collective, suggested that while Vought’s actions can be attributed to his ties to corporate interests and his aim to undermine government operations from within, Musk’s motives are likely more self-serving and personal.

By limiting the CFPB’s operational capabilities and accessing its extensive files, including details on regulated institutions, Musk aims to “smooth the path for his new business venture,” Owens stated.

“We understand that Elon Musk is interested in launching his own payment app—he’s partnered with Visa for this venture,” she explained, “and thus he has a vested interest in making sure the CFPB does not obstruct his plans.”

Owens also noted that Musk’s interest in the agency extends further, as the CFPB holds “trade secrets from enforcement actions against some of his possible future competitors.”

On Friday, The American Prospect‘s David Dayen highlighted a lesser-known Feb. 3 directive from Bessent that specifically halted the new designation of non-bank entities, including “nondepository institutions,” a move that would directly benefit Musk’s planned peer-to-peer payment service on X, which he intends to launch in collaboration with Visa.

Dayen noted:

By delaying the designation of nondepository institutions, Bessent ensures that X will not be subject to CFPB oversight, at least in the short term.

The more benign explanation for this last-minute policy change is that Bessent was likely unaware of the full extent of what the CFPB does, and subsequently added supervision later. However, the specific directive to exclude non-banks from the supervisory process acts as a thinly veiled protection for major tech payment app companies, especially the venture led by special government employee Elon Musk.

Sen. Ed Markey (D-Mass.) voiced his concerns on this issue on Saturday night.

“Elon wants the CFPB dismantled so tech billionaires can profit from apps like X, which provide banking services without adhering to the financial regulations that safeguard people’s money,” Markey stated. “Musk is exploiting the government to enrich himself. This is a clear conflict of interest.”