Senate Votes to Strip CFPB of Oversight on Digital Payments

The decision, which could benefit Elon Musk's X, raises conflict of interest concerns and faces scrutiny from federal ethics officials.

The U.S. Senate voted 51-47 to revoke the CFPB's authority to regulate digital payment platforms, with the resolution now awaiting a House vote.
Elon Musk's social media platform X, which plans to enter the payments space, could directly benefit from the regulatory rollback.
Democratic Senators Elizabeth Warren and Adam Schiff have called for an ethics investigation into Musk's role in the decision, citing potential conflicts of interest.
The CFPB's oversight rule, finalized in 2024, aimed to address fraud, privacy, and consumer protection issues in digital payment apps like Venmo and Apple Pay.
Musk, a vocal critic of the CFPB, has influenced its dismantling through the Department of Government Efficiency, sparking concerns over regulatory fairness.