CFPB Official Quits, Blames President Trump for Gutting Consumer Protections

In an email reviewed by Reuters on June 10, Petersen stated that recent decisions by agency leadership had made it difficult for the bureau to fulfill its core duties.

Petersen described plans to reduce staff by around 90%, which she said would prevent the agency from properly overseeing financial services and protecting consumers. She noted that case closures, dropped settlements, and staff reductions have weakened the office's workload.

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The email said the recent changes are part of a larger trend where laws are not being properly enforced. She compared the situation to how the Trump administration handled trade tariffs, which left many US crypto mining companies uncertain about their future due to unclear policy decisions.

She stated that President Donald Trump "has no intention to enforce the law in any meaningful way".

The CFPB was established after the 2008 financial crisis to prevent financial companies from taking advantage of their customers. It was meant to help with problems involving loans, credit cards, and other money-related products.

It also looks into complaints about cryptocurrency platforms. As a result, a weaker CFPB could mean less oversight in that industry, even as scams and fraud continue to affect users.

On May 29, Elon Musk resigned from the Department of Government Efficiency (DOGE), a White House initiative aimed at reducing federal spending and job cuts. What happened? Read the full story.