However, Chopra was ousted just over a month ago by former President Donald Trump, who replaced him with budget chief Russell Vought as the acting director. Since taking the helm, Vought has been systematically dismantling the agency’s enforcement actions in what appears to be a sweeping rollback of regulatory oversight.
A Purge of Enforcement Cases
With Tuesday’s move, the Zelle lawsuit becomes the ninth enforcement case the CFPB has scrapped in just two weeks, underscoring the agency’s new direction. The abrupt reversals have sparked debate over the future of consumer protection enforcement, with critics warning of reduced accountability for financial institutions.
As regulatory shifts continue, the dismissal of this case raises pressing questions: Is this a retreat from consumer protection, or simply a recalibration of enforcement priorities? Either way, Wall Street just won a major round in its ongoing battle with Washington.
