The U.S. Consumer Financial Protection Bureau’s lead enforcement official has stepped down, delivering a sharp critique of the Trump administration in a strongly worded farewell email, according to a report.
In the message obtained by Reuters, Cara Petersen, the CFPB’s acting enforcement director, accused the administration of significantly weakening the agency’s ability to carry out its mission. She pointed to drastic internal changes—such as proposed cuts affecting up to 90% of the workforce—as key obstacles to maintaining fair, transparent, and competitive financial practices for consumers.
Petersen stated, “I have worked under every director and acting director in the bureau’s history, and I have never witnessed the ability to carry out our core mission so under attack.”
She further condemned the agency’s direction under recent leadership, citing “reckless staff reductions, sudden case dismissals, and canceled settlements” that she claims have allowed violators to evade accountability.
Petersen’s departure marks a significant moment of internal dissent within the agency, raising concerns about the future of consumer financial protections in the U.S.
Originally established after the 2008 financial crisis, the Consumer Financial Protection Bureau (CFPB) was tasked with regulating financial companies—including money transfer services—to protect consumers from abusive and predatory behavior. The agency also handles consumer complaints related to U.S.-based crypto exchanges, making its role increasingly important in today’s evolving digital asset landscape.
However, recent efforts to dismantle the CFPB under the Trump administration could create a dangerous gap in oversight. With crypto-related scams and fraud still rampant, a weakened CFPB may result in less regulatory clarity, potentially fueling more uncertainty and risk in the crypto sector.
Critics argue that this move reflects a wider trend of regulatory instability under Trump’s leadership—comparable to his erratic tariff policies that left U.S. crypto mining firms struggling to plan ahead amid supply chain uncertainty. Cara Petersen stated categorically in her email of resignation that Trump “has no intention to enforce the law in any meaningful way.”
The CFPB’s effectiveness remains a point of contention between parties. Republicans have long criticized the agency for holding too much unchecked power, while Democrats view it as a vital institution for consumer protection and market integrity.
Adding to the controversy, Trump-appointed officials like OMB Director Russell Vought dropped key enforcement actions against Walmart and Capital One, signaling a broader pullback from corporate accountability.
Meanwhile, the legality of Trump’s actions is being tested in court. A federal appeals court in Washington D.C. is currently reviewing whether the administration can overturn an injunction that restricts its ability to fire CFPB personnel. This comes after termination notices were issued to over 1,400 staff members in April, prompting Judge Amy Berman Jackson to temporarily block the layoffs.
As the situation unfolds, the fate of the CFPB—and by extension, crypto consumer protections—hangs in the balance.
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