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US Senator Elizabeth Warren voiced strong opposition against Elon Musk and President Donald Trump concerning their attempts to dismantle the Consumer Financial Protection Bureau (CFPB), an entity she was instrumental in founding.
The CFPB, established with the intention of safeguarding consumers, was hit by a significant reduction in staff on February 13, with up to 100 employees receiving termination notices.
This latest round of layoffs follows actions taken by Russell Vought, the director of the Office of Management and Budget and the acting head of the CFPB, who was recently appointed by President Trump.
Vought halted new funding for the agency, aligning with the objectives of the Musk-led Department of Government Efficiency’s Workforce Optimization Initiative.
Senator Warren, in a Mother Jones interview on February 12, emphasized that only Congress has the authority to shut down the CFPB. She defended the agency's track record, highlighting its success in exposing over $21 billion in deceptive practices by large banks and lenders that targeted American families.
In response to the recent events, Warren suggested that Musk and Trump's motivations for disbanding the CFPB might include diverting attention from the issue of rising inflation and furthering Musk's ambition to transform his company, X, into a comprehensive financial platform.
She expressed concerns that the CFPB's dissolution would remove a significant barrier to Musk's plans, likening his strategy to a bank robber eliminating law enforcement ahead of a heist.
Senator Warren has consistently expressed skepticism towards the cryptocurrency industry, advocating for it to be regulated under the same guidelines as banks and stockbrokers. In January 2025, the CFPB proposed a rule that would require crypto firms to reimburse customers for losses due to hacks, mirroring protections offered by US banks.
The senator's stance on consumer protection extends to her concerns about international financial security issues, such as Russia's potential use of the cryptocurrency Tether to circumvent US sanctions. She questioned Howard Lutnick, Trump's nominee for commerce secretary, about his ties to Tether earlier in January 2025.
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