In a significant and highly anticipated move, President Donald Trump has fired Rohit Chopra, the Director of the Consumer Financial Protection Bureau (CFPB or Bureau). Rohit Chopra, who had been serving as the Director of the CFPB since 2021, confirmed his departure in a letter to President Trump dated February 1, 2025. Chopra’s tenure was characterized by aggressive efforts to curb what he termed as “junk” fees and regulate Big Tech’s financial services.
Chopra’s Letter
In a departure letter posted on X, Chopra expressed his gratitude for the opportunity to serve and highlighted the role of the CFPB in protecting consumers:
“Mr. President: It has been an extraordinary privilege to serve as Director of the Consumer Financial Protection Bureau (CFPB) and as a Member of the Board of Directors of the Federal Deposit Insurance Corporation since 2021, as well as to serve as a Commissioner on the Federal Trade Commission from 2018 to 2021. I am grateful to both President Biden and you for nominating me and to the United States Senate for confirming me to these positions.”
Chopra’s letter also emphasized his opinion of the importance of the CFPB in holding powerful firms accountable and restoring the rule of law: “The global financial crisis that erupted in 2008 didn’t just destroy trillions of dollars of family wealth. It also made Americans question whether regulators and law enforcement would hold companies and their executives accountable for mismanagement or wrongdoing. Instead, many of the companies responsible for crashing our economy got bigger and more powerful — with the help of taxpayer money. That’s what agencies like the CFPB work to fix: to make sure that the laws of our land aren’t just words on a page.”
Announcement of Successor
President Trump designated Secretary of the Treasury Scott Bessent as Acting Director. In the press release announcing his designation, Director Bessent stated, “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.”
Ongoing Regulatory Freeze
Two weeks ago, President Trump issued a memorandum ordering a freeze on all new regulations pending a comprehensive review. The memorandum states:
“By the authority vested in me as President by the Constitution and the laws of the United States of America, I hereby order all executive departments and agencies to take the following steps:
(1) Do not propose or issue any rule in any manner, including by sending a rule to the Office of the Federal Register (the OFR), until a department or agency head appointed or designated by the President after noon on January 20, 2025, reviews and approves the rule. The department or agency head may delegate this power of review and approval to any other person so appointed or designated by the President, consistent with applicable law. The Director or Acting Director of the Office of Management and Budget (the OMB Director) may exempt any rule that he deems necessary to address emergency situations or other urgent circumstances, including rules subject to statutory or judicial deadlines that require prompt action.”
Our Take
With Chopra’s departure, the designation of Scott Bessent as Acting Director, and the regulatory freeze, the CFPB’s future direction remains uncertain. The next steps will likely depend on the outcomes of the regulatory reviews and Bessent’s approach to leadership. The Trump administration’s actions suggest a potential shift away from the tough-on-industry posture of Chopra’s tenure, with possible rule rollbacks and staff reductions on the horizon.