CFPB Director Rohit Chopra reiterated during a Senate Banking Committee hearing yesterday that if President-elect Trump wants someone else to run the Bureau when he takes office next month that he is going to have to fire Chopra because the current director has no plans to resign.
Catch up fast: Chopra, who was confirmed as CFPB Director in September 2021, emphasized during the hearing his respect for the president’s authority to remove him.
- During Trump’s first term, then-CFPB Director Kathy Kraninger resigned hours after President Biden’s inauguration, paving the way for Biden to appoint Chopra. This time, Trump may need to fire Chopra if he wants a new CFPB leader in place quickly.
- Trump has not yet named a replacement for Chopra but can appoint an acting director until his nominee is confirmed by the Senate.
Between the lines: The CFPB’s ongoing rulemaking once again drew sharp criticism from incoming Senate Banking Committee Chair Tim Scott [R-S.C.], who has urged all financial regulators to suspend new rules until the new administration takes office.
- Sen. Scott accused Chopra of advancing a partisan agenda by pushing rules on nonbank digital payments companies, data brokers, and protections for domestic violence and elder abuse victims.
- Chopra defended his approach, stating, “I don’t think it makes sense for the CFPB to be a dead fish.”
What’s next: The CFPB’s future remains uncertain. With a nearly $1 billion budget and no Congressional appropriations oversight, the agency’s structure has long been a target for reform by Republicans. Sen. Scott has signaled that accountability at the Bureau will be a key focus for the new Congress.
- The Trump administration’s approach to consumer financial protection will likely shift away from Chopra’s active regulatory agenda, emphasizing choice and opportunity in financial services.
