US Democratic Senator Elizabeth Warren resists ongoing efforts between tech entrepreneur Elon Musk and former President Donald Trump to destroy the Consumer Financial Protection Bureau because she helped create this federal agency in 2007.
On February 13 the US government agency CFPB conducted additional employment cuts to its workforce. NPR finds the agency let go up to 100 employees like before in new layoffs.
The CFPB employees now face reduced budgets because Trump appointed manager Russell Vought stopped funding to the agency. Under the Workforce Optimization Initiative DOGE runs the Chief Executive organization’s plan to reduce public staff costs.
CFPB’s Role in Exposing Financial Scams
According to Warren she told Mother Jones on February 12 that only Congress holds the authority to shut down the CFPB because lawmakers at Congress established the agency.
The agency demonstrated its importance by finding $21 billion in scams that large banks and lenders committed against American families through its effective enforcement activities. The largest banks strongly opposed the CFPB from its inception because this agency reduced their profits when they misled consumers.
According to Warren allfas, Musk and Trump want to eliminate the CFPB because both confront inflation issues. The analyst highlighted both causes for her view that Musk pursued to convert X into a universal application.
Warren thinks Musk pushes to drop government rules because his money-losing business with X pushes him to sacrifice government protection. Warren said:
“He is moving to get the CFPB out of the way just before he launches his money platform. It’s a little like a bank robber managing to fire the cops just before he strolls into the lobby of the institution.”
Warren has always expressed doubts about cryptocurrency businesses because she wants to control them using bank and financial practitioner oversight methods. In January 2025 the CFPB published a regulation that protects banking-style user funds and requires crypto firms to replace money stolen through cyberattacks just like regular bank accounts do.
Trump’s Memecoin Crash and Investor Reactions
Most US buyers stand behind these safety rules because Trump’s memecoin lost $2 billion value shortly after its market debut in January 2025. While the role of memecoins in_checks remains subject to doubt about jurisdiction since Hester Peirce points out they belong to congress’s domain not the SEC’s in charge of crypto regulations.
Warren sees Tether USDt helping Russia evade US sanctions against the country. During January 2025 the Senator asked Howard Lutnick about his Tether ties and this increased safety concerns about digital currencies across national frontiers.
Labor unions and watchdog groups have filed legal actions against Musk because they think his DOGE service may expose Treasury payments to unauthorized users. A group of five former Treasury secretaries explain in their warnings that allowing DOGE to integrate with Treasury processes presents significant problems which would affect congressionally determined payments.
Top Senate Finance Committee members led by Senator Ron Wyden sought information about DOGE use on Treasury systems but were blocked from receiving it by the Treasury Department. Treasury officials still avoided explaining ongoing legal disputes because of their political difference with other agencies.
Warren keeps working for the CFPB defense as people in America still strongly disagree on how to control the banking system. People support and oppose the financial rules these days because the future status of the CFPB remains unclear.
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