Senate Votes to Remove CFPB Oversight of Digital Payments, Raising Conflict of Interest Concerns for Elon Musk

The decision could benefit Musk's X platform as it prepares to enter the payments industry, while ethics investigations into his role continue.

The Senate voted 51-47 to revoke the Consumer Financial Protection Bureau's (CFPB) authority to regulate digital payment platforms, with one Republican joining Democrats in opposition.
The CFPB rule, finalized in 2024, aimed to oversee digital payment apps like Venmo and Apple Pay for fraud prevention, privacy, and consumer protection, similar to traditional financial institutions.
Critics argue the rollback benefits Elon Musk's X platform, which plans to launch a digital wallet and payment service later this year, potentially avoiding CFPB scrutiny.
Concerns have been raised about Musk's dual role as a government advisor through the Department of Government Efficiency (DOGE) and his business interests, prompting lawmakers to call for an ethics investigation.
The legislation now moves to the House for approval, while the CFPB's future remains uncertain under the Trump administration's broader efforts to dismantle the agency.