On January 31, 2025, the CFPB announced President Donald Trump had appointed Scott Bessent as Acting Director of the CFPB. In a brief statement, Bessent expressed his commitment to advancing the administration’s agenda to lower costs for Americans and accelerate economic growth.
Industry groups have welcomed Bessent’s leadership, anticipating a rollback of regulations established during tenure of former Director Rohit Chopra.
Bessent reportedly sent an email to staff instructing them to pause all new rulemaking, enforcement activity, litigation efforts, and public communications, except as approved by the Director’s office or required by law. This may impact ongoing lawsuits and rules that are final but have yet to go into effect.
Putting It Into Practice: Given Bessent’s background in investment and finance, there may be a move towards more industry-friendly regulations. Financial institutions should monitor potential shifts in CFPB policies and enforcement priorities under Secretary Bessent’s leadership. We will continue to monitor these developments.