Senator Elizabeth Warren has launched a sharp critique against Elon Musk and former President Donald Trump, accusing them of attempting to dismantle the Consumer Financial Protection Bureau (CFPB) an agency she played a key role in creating in 2007.
Up to 100 CFPB employees were laid off on February 13, as per NPR report. The cuts align with the Musk-led Department of Government Efficiency’s Workforce Optimization Initiative (DOGE) and were initiated after Russell Vought, the acting CFPB head appointed by Trump, moved to cut off the agency’s funding.
Warren Defends the CFPB’s Consumer Protection Efforts
In a February 12 interview with Mother Jones, Warren emphasized the critical role of the CFPB, stating that the agency has uncovered at least $21 billion in scams by big banks and lenders that have exploited American consumers.
“The CFPB was created by Congress, and Congress—not Elon Musk, not Donald Trump—is the only one that can shut it down,” Warren asserted.
She further accused big banks of despising the CFPB because it directly impacts their profits by preventing deceptive financial practices.
“Giant banks hated this agency from the first time I ever talked about it, and the reason is pretty straightforward: It bites into the profits they would make from cheating people,” she added.
Musk’s Alleged Motives: The ‘Everything App’ and Financial Data
Warren suggested that Musk’s push to eliminate the CFPB is linked to his ambitions for X (formerly Twitter). She believes Musk envisions X as a financial services powerhouse, but the CFPB could pose regulatory hurdles to such an endeavor.
“Musk has lost money hand over fist on X. So he has this idea of X becoming a big money platform where he would get everyone’s personal financial data,” Warren claimed.
She then likened Musk’s actions to a bank robber eliminating law enforcement before committing a crime:
“He is moving to get the CFPB out of the way just before he launches his money platform. It’s a little like a bank robber managing to fire the cops just before he strolls into the lobby of the institution.”
CFPB and Crypto: Consumer Protection or Industry Attack?
Warren has been an outspoken critic of the cryptocurrency industry, advocating for stronger regulations to bring crypto firms under the same oversight as banks and stockbrokers.
In January 2025, the CFPB proposed a rule that would require crypto firms to reimburse users for funds lost to hacks, similar to protections offered for U.S. bank accounts. While some consumers welcomed this move, critics argued that it stifles innovation and burdens crypto businesses with excessive regulations.
Warren also criticized Trump’s controversial memecoin launch in early 2025, pointing out that investors lost $2 billion when the token’s price plummeted. However, according to Securities and Exchange Commission (SEC) Crypto Task Force head Hester Peirce, memecoins do not fall under SEC jurisdiction, making regulation a matter for Congress.
Additionally, Warren has raised concerns about Russia’s alleged use of Tether’s USDt (USDT) stablecoin to evade U.S. sanctions. In January 2025, she questioned Trump’s nominee for Commerce Secretary, Howard Lutnick, about his ties to Tether during his confirmation hearing.
Regulatory and Political Implications
Warren’s latest statements underscore the growing tensions between lawmakers, financial regulators, and tech billionaires over the future of financial oversight. While Musk’s vision for X as a financial services hub raises legitimate regulatory questions, Warren’s aggressive stance also signals broader government scrutiny of digital finance and cryptocurrency.
As the Biden administration, lawmakers, and regulatory agencies continue to debate financial oversight, the future of the CFPB—and its role in crypto, digital banking, and consumer protection remains a high-stakes battle in Washington.
