Federal Watchdog Stripped of Power to Oversee Online Payment Platforms
A key federal watchdog is being stripped of its power to oversee potential fraud and abuse in online payment platforms just as Elon Musk’s site, X, attempts to become one.

Background
Late last year, the Consumer Financial Protection Bureau (CFPB), which is tasked with rooting out financial malfeasance, issued a rule that expanded its purview to include digital payment apps like Venmo, PayPal, and Zelle. The CFPB had sought to exert oversight over the increasingly popular peer-to-peer payment sites, with the agency’s then-director Rohit Chopra stating, "Digital payments have gone from novelty to necessity and our oversight must reflect this reality." The rule aimed to protect consumer privacy, guard against fraud, and prevent illegal account closures.

Recent Developments
Since then, Trump has fired Chopra, and Musk’s DOGE has sought to shut down the CFPB. The newly installed CFPB chief, Russell Vought, has enacted several policies that slowed the agency’s operations to a crawl before telling staff members they did not need to come to work. The attack on the CFPB has run into legal roadblocks, but the effort to destroy the agency comes at an interesting juncture, given that Musk’s platform, X, recently entered into an arrangement with Visa to create a peer-to-peer digital payments system.

Rollback of CFPB Rule
Now, Republican lawmakers have sought to cut off the CFPB from monitoring online payments. The U.S. Senate voted on a resolution that would roll back the previously introduced CFPB rule, which gave the agency the power to monitor online payment platforms. The resolution still needs to be approved by the House, but the House is currently controlled by Republicans.

Concerns of Conflict of Interest
Congressional acquiescence to policies that would benefit Musk’s companies is particularly worrying, given that Musk has threatened to use his fortune to "primary" lawmakers who do not go along with his and President Trump’s agenda. A number of Democrats have attempted to push back on the GOP-led gutting of the CFPB, with U.S. Senator Elizabeth Warren and Senator Adam Schiff writing to Doug Collins, the Acting Director of the Office of Government Ethics, demanding to know whether the conflicts of interest inherent to Musk’s role in government were being probed.

Potential Benefits to Musk’s Companies
Warren and Schiff pointed out that the CFPB has taken steps to protect consumers from fraud on digital payment apps and collects proprietary information from the digital payment industry. Musk is also the founder and CEO of Tesla, which offers customers the option of working with Tesla to finance their auto purchases. The CFPB plays a critical role in supervising the auto lending industry and protecting consumers from corporate malfeasance and scams. Therefore, actions by Musk and DOGE at the CFPB have the potential to directly benefit X, Visa, and Tesla—and by extension, Musk.

Bipartisan Outrage
The effort to destroy the CFPB has also inspired outrage across the aisle, specifically from right-wing influencer Laura Loomer. Loomer took to social media to bash the GOP’s attack on the regulatory agency, which she correctly pointed out is responsible for stopping "debanking." The crypto community has claimed that "debanking" is a huge problem for them. Loomer wrote, "Every Senate Republican with the exception of Senator Josh Hawley just voted to LEGALIZE DEBANKING." Musk replied to Loomer with a single word: "Really?"