The Trump administration, backed by major US crypto firms, has drastically scaled back the Consumer Financial Protection Bureau (CFPB), leaving consumers with fewer protections. Cara Petersen, the CFPB’s acting enforcement director, resigned on June 10, criticizing the administration’s ‘thoughtless’ cuts pushed by the Department of Government Efficiency (DOGE). Republican lawmakers and the White House argue the move streamlines the agency without hindering innovation, while crypto industry figures like Coinbase CEO Brian Armstrong have openly opposed the CFPB, calling it ‘unconstitutional.’ The shift raises concerns about market oversight as crypto investors face reduced regulatory safeguards.
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CFPB Enforcement Director Resigns Over Mission Threats
Cara Petersen, the CFPB’s acting enforcement director, has resigned, claiming the Trump administration’s actions have severely compromised the agency’s mission. In a farewell email, Petersen criticized attempts to slash 90% of the CFPB’s workforce, arguing it hinders efforts to ensure fair and transparent financial products for consumers. She stated this is the first time in the bureau’s history she has seen its core mission so threatened. The resignation highlights ongoing tensions between the CFPB and the current administration over financial regulation and consumer protection.
read moreSEC Ends PayPal Stablecoin Probe, Boosts PYUSD
The U.S. Securities and Exchange Commission (SEC) has concluded its inquiry into PayPal’s dollar-backed stablecoin, PYUSD, opting not to take enforcement action, as revealed in the company’s Q1 2025 filings. This decision removes a legal overhang for PayPal and issuer Paxos, suggesting a measured regulatory approach to certain stablecoins. The SEC’s move aligns with post-Gensler shifts and could bolster the GENIUS Act, a bipartisan bill proposing a dedicated regulatory framework for payment stablecoins. PYUSD, launched in 2023, is backed by cash and U.S. Treasuries and integrated into PayPal’s platforms, though its market share remains small. The SEC’s stance provides clarity but leaves broader stablecoin regulation unresolved, with Congress likely to shape future rules. Meanwhile, PayPal faces unrelated regulatory probes, but the PYUSD case marks a significant step for crypto-friendly oversight.
read moreFed Eases Crypto Rules for US Banks, Withdraws Key Letters
The Federal Reserve Board has rescinded two major supervisory letters from 2022 and 2023 that required US banks to notify regulators before conducting crypto-related activities. This decision removes previous restrictions and aligns with recent policy shifts from other banking regulators like the OCC. The withdrawn letters had mandated banks to demonstrate risk management practices and obtain supervisory approval for crypto activities. The Fed stated it will now monitor crypto through normal supervisory processes rather than special requirements. This regulatory easing comes amid broader changes in banking policy toward digital assets, including the OCC’s recent reversal on crypto holdings for national banks. The Fed hinted at future interagency collaboration to provide guidance without stifling innovation in the crypto space.
read moreCFPB Drops Lawsuit Against Banks Over Zelle Fraud Protection Failures
The Consumer Financial Protection Bureau (CFPB) has unexpectedly dropped its lawsuit against JPMorgan Chase, Wells Fargo, Bank of America, and Zelle, which accused them of failing to protect consumers from $870 million in losses over seven years. The dismissal, made with prejudice and without explanation, follows efforts by the Trump administration to weaken the agency. This lawsuit stemmed from a Senate investigation led by Senator Richard Blumenthal, highlighting inadequate protections for Zelle users.
read moreSenate to Vote on Reversing IRS Rule Impacting Decentralized Finance
The U.S. Senate is set to vote on reversing an IRS rule that the crypto industry claims threatens decentralized finance (DeFi). Senator Ted Cruz is leading the effort to rescind the regulation, which requires more tax disclosures from crypto projects, while the House Financial Services Committee is also advancing a matching resolution. Additionally, a White House crypto summit is scheduled for March 7, highlighting ongoing discussions around digital asset regulations.
read moreKey Market Updates and Economic Developments Ahead of Trading Day
Stock futures are up as markets approach the end of a challenging February, with major indexes down nearly 3% to over 5.5%. President Trump is set to impose new tariffs on Canada, Mexico, and China, prompting potential retaliation from Beijing. Meanwhile, the Consumer Financial Protection Bureau has dropped multiple enforcement lawsuits, signaling a shift under new leadership. Egg dye kit makers are concerned about low sales due to high egg prices ahead of Easter.
read moreBlock Inc Negotiates Settlement with New York Over Money Laundering Claims
Jack Dorsey’s Block Inc. is negotiating with New York regulators to settle allegations related to its Anti-Money Laundering (AML) and Bitcoin programs. The company has faced scrutiny from multiple states, resulting in an $80 million settlement for deficiencies in its AML practices, while ongoing discussions with the New York State Department of Financial Services continue. Additionally, Block is under investigation by the Consumer Financial Protection Bureau regarding Cash App’s handling of customer complaints.
read moreLawmaker Calls for Consumer Protections Amid Rising Cryptocurrency Scams
U.S. Representative Ayanna Pressley criticized President Trump and Elon Musk for undermining consumer protections in the cryptocurrency space, highlighting the rise of scams and the dismantling of the Consumer Financial Protection Bureau (CFPB). She pointed to Trump’s meme coin, which lost 40% of its value, leaving investors at a loss, and called for the CFPB’s reinstatement to safeguard consumers. Supporters of Musk and Trump argue that their reforms aim to enhance government efficiency and promote innovation in the crypto sector.
read moreElizabeth Warren and Donald Trump Unite to Address Crypto Debanking Issues
Senator Elizabeth Warren has shifted her stance on crypto regulation, now pledging to collaborate with former President Donald Trump to address the issue of debanking in the crypto industry. This comes amid revelations of banking restrictions on crypto-related businesses that predate the Trump administration. Warren’s new focus on investigating banks that deny services to crypto firms marks a significant change from her previous skepticism, suggesting potential shifts in the regulatory landscape as both she and Trump navigate this complex issue.
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