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Chopra Out. Bessent In (for Now). What’s Next at the CFPB?

Read Time: 2 mins

As expected, the Trump administration formally terminated CFPB director Rohit Chopra over the weekend. And also as expected, President Trump used the Federal Vacancies Reform Act to appoint an acting CFPB Director—Treasury Secretary Scott Bessent. The Trump administration took a similar approach the first time around, when it named Mick Mulvaney acting head of the Bureau in 2017. Under the Federal Vacancies Reform Act, Secretary Bessent can serve as acting head of the CFPB for up to 210 days, or while a first (or second) permanent nomination for head of the CFPB is pending in the Senate.

Secretary Bessent, who received bipartisan support when he was approved as Secretary of the Treasury, is a former investment banker and hedge fund manager who was also an adjunct professor of economic history at Yale. It is not immediately clear what Secretary Bessent’s priorities will be as acting head of the CFPB. However, it seems he could pursue an agenda that may, at times, clash with traditional conservative ideals.

In his first public comment as acting director, Secretary Bessent stated that he “look[ed] forward to working with the CFPB to advance President Trump’s agenda to lower costs for the American people and accelerate economic growth.” Reducing costs is popular with the public, but Congressional Republicans were vocal about what they viewed as regulatory overreach during the Chopra era, especially with respect to so-called “junk fees.”

It is also likely that the pace of rulemaking and enforcement activity dramatically slows during Acting Director Bessent’s tenure. Not only is there a freeze on all rulemaking due to President Trump’s Regulatory Freeze Pending Review Executive Order, but immediately after his appointment, Acting Director Bessent directed the CFPB to not approve or issue proposed or final rules or formal or informal guidance, and to suspend effective dates for all final rules that are not yet effective. Acting Director Bessent also directed staff to pause all enforcement actions, evidencing a clear intent to critically review all of the Bureau’s activity from the past few years to ensure it comports with President Trump’s agenda.

Stay tuned for further updates as to the Acting Director’s plans for the Bureau, its priorities, and activities.

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