The Consumer Financial Protection Bureau (CFPB) is expected to have a diminished role in cryptocurrency regulation as other federal entities, such as the Securities and Exchange Commission (SEC), and state-level regulators take the lead in setting crypto policy, according to attorney Ethan Ostroff. He highlighted that the current administration's approach likely points towards a pullback from the CFPB's activities, especially with state regulators empowered under the Consumer Financial Protection Act (CFPA) to play a significant role. Ostroff mentioned New York's Department of Financial Services and California's Department of Financial Protection and Innovation as key players to watch. Although the CFPB may see a decrease in its influence, it won't be entirely dismantled due to existing statutory obligations requiring Congressional action for any substantial changes. The CFPB has been targetted by the Trump administration amid efforts for bureaucratic efficiency, but complete dismantlement is not feasible without legislative approval.

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