The Consumer Financial Protection Bureau (CFPB) is likely to see a decreased role in crypto regulations such as other federal agencies such as the Securities and Exchange Commission (SEC) and state regulators assume a bigger role in crypto policy, according to Ethan Ostroff, partners in the Troutman Pepper Lacke Law Firm.
“I think in the current administration, my feeling is, we are likely to see a significant CFPB pullback in the context of other regulators’ activity,” Ostroff told Cointelegraph in an interview.
State regulators also have authority under the Consumer Financial Protection Act (CFPA) to assume some of CFPB regulation dutiesThe lawyer said but also added that some regulatory operations will continue to fall within Purview of the CFPB as a matter of established law.
Ostroff noted the New York Department of Financial Services (NYDFS) and the California Department of Financial Protection and Innovation (DFPI) as regulators to guard as potential leader of crypto regulations at state level.
However, the attorney clarified that while the CFPB could see a reduced role during the Trump management, the agency could not be assigned during the current regime due to “by law -the -law ordered obligations and requirements” which requires the works of Congress to change.
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Trump administration targets the CFPB in the efficiency of pushing
Trump administration targets the CFPB as part of a greater push of Department of governmental efficiency (Doge) to Slash that government expenditure and reduce federal debt.
Russell Vought, the recently designated CFPB leader, announced Major reductions in funding The agency and the back operations were scaled over the days of the CFPB helmet assumption in February 2025.
Source: Russell Vought
Massachusetts Senator Elizabeth Warren Elon Musk criticized for CFPB’s dismantlingfounded by the US senator in 2007.
Warren describes Musk as a “bank thief” and claims that the Trump administration is abolishing the CFPB to eliminate consumer protection policies and have more control over the financial system.
On a February 12 interview In Mother Jones, the senator emphasized that the executive branch of government has no law authority to completely abolish the CFPB, which can only be done by approved by Congress.
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