When Scott Bessent was sworn in as Treasury Secretary on January 28, 2025, the financial world knew the "Chopra era" at the Consumer Financial Protection Bureau (CFPB) was on life support. They just didn’t expect the plug to be pulled so violently fast.
Basically, within 72 hours of taking his post at Treasury, Bessent found himself wearing two hats. President Trump fired Rohit Chopra—the agency’s aggressive, industry-hating director—via email on a Saturday. By Monday, February 3, 2025, Scott Bessent was officially the Bessent CFPB acting director, a move that sent immediate shockwaves through the halls of the Constitution Center in D.C.
It was a total vibe shift.
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The Week the CFPB Stood Still
Most acting directors try to blend in. They keep the seat warm and maybe change the coffee brand in the breakroom. Not Bessent.
Honestly, his first day was a regulatory bloodbath. He didn't just tweak things; he hit the giant "pause" button on the entire machine. He issued a memo that effectively froze every single ongoing enforcement action, every investigation, and every piece of pending rulemaking.
- Rulemaking: All proposed rules? Gone.
- Enforcement: Investigations into "junk fees" and credit card interest? Halted.
- Public Comms: The agency’s blog and Twitter (X) accounts? Ghost town status.
The goal was simple: stop the momentum of the previous administration before it could lock in any more "pro-consumer" (or "anti-business," depending on who you ask) policies. Bessent’s tenure as acting director was never meant to be a long-term residency. It was a tactical strike.
Why Bessent Stepped Down So Quickly
You might be wondering why we’re talking about Scott Bessent as an "acting" director when he only held the job for about a week. It feels kinda weird, right?
Well, it was all about the Federal Vacancies Reform Act.
The Trump administration needed a Senate-confirmed official to legally step into the role and clear the decks. Since Bessent had just been confirmed as Treasury Secretary, he was the perfect legal "cleaner." But Bessent has a massive job running the U.S. Treasury—he can’t be worried about payday loan disclosures and mortgage servicing rules all day.
By February 7, 2025, the baton was passed to Russell Vought, the OMB Director. Vought is a hawk’s hawk when it comes to federal spending, and he took Bessent’s "pause" and turned it into a full-scale attempt to defund and dismantle the agency.
The "Shadow" Leadership of 2026
Fast forward to right now, January 2026. The dust hasn't settled.
The CFPB is currently in a state of absolute chaos. While Stuart Levenbach was nominated for the permanent director spot back in November 2025, he’s still waiting on the Senate. In the meantime, Russ Vought is still the acting director, and the agency is literally running out of money.
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Actually, as of last week, a federal judge had to order the CFPB to stay open after Vought tried to claim the agency had zero legal funding left because the Federal Reserve (which usually pays the bills) isn't making a profit.
Bessent’s fingerprints are everywhere here. He set the precedent. By being the first one through the door to freeze operations, he proved that the executive branch could effectively paralyze an "independent" agency without needing a single vote from Congress. It was a masterclass in administrative power-playing.
What Most People Get Wrong About the Move
People often think Bessent was trying to "delete" the CFPB. That's not really true.
If you look at his actual statements from early 2025, he talked a lot about "common-sense" regulation. He’s a hedge fund guy; he likes markets. He doesn't necessarily want a lawless Wild West where people get scammed—because that's bad for the economy—but he definitely wants a bureau that stops "adversarial" litigation against big banks.
"I look forward to working with the CFPB to advance President Trump’s agenda to lower costs for the American people and accelerate economic growth," Bessent said at the time.
Translation: "We’re going to stop suing people and start focusing on 'growth.'"
The Current State of Play (Early 2026)
If you're a consumer or a business owner trying to navigate the 2026 financial landscape, here is the ground truth:
- The Funding Cliff: The agency is surviving on court-ordered life support. There is a real chance it could "dark" by March if the funding battle in Congress doesn't resolve.
- Enforcement is Dead: Unless you’re a truly "bad actor" (think blatant fraud), the CFPB isn't looking for new fights. The aggressive posture of the 2021-2024 era is a memory.
- State Power: Because the federal CFPB is so weakened, state Attorneys General (especially in blue states like California and New York) are stepping up. They’re using their own state laws to do the work the CFPB used to do.
Actionable Insights for 2026
If you’re managing a business or just trying to keep your credit score alive, don't assume the rules are "gone" just because the CFPB is in a coma.
First, keep an eye on state-level regulators. They are the new sheriffs. If you’re a lender or a fintech firm, your biggest threat isn't Scott Bessent or Russ Vought; it’s a lawsuit from a state AG.
Second, watch the Stuart Levenbach confirmation. If he gets in, expect a slightly more stable, "normal" version of a conservative CFPB. If he doesn't, and Vought stays acting director, expect the "burn it down" strategy to continue.
Finally, ignore the noise about the agency being "illegal." The Supreme Court already ruled it’s constitutional. The fight now is purely about the wallet—who pays for it and how much.
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Your Next Steps:
- Audit your compliance against state-level consumer protection laws, as these are now the primary enforcement mechanisms.
- Review the 2025-2026 funding litigation updates to anticipate whether the Bureau will be operational for your Q3 and Q4 filings.
- Monitor the Senate Banking Committee for Levenbach's hearing dates to gauge when the "acting" director era might finally end.