Senators demand removal of Elon Musk's staff from CFPB over conflict concerns

U.S. Senators Elizabeth Warren and Adam Schiff have called for the removal of Elon Musk's staff from the Consumer Financial Protection Bureau (CFPB), citing conflicts of interest related to Musk's companies, X and Tesla. In a letter addressed to Acting Director of the CFPB Russ Vought and Secretary of the Treasury Scott Bessent, the senators expressed concerns about Musk's "Department of Government Efficiency" (DOGE) personnel within the agency.

The senators stated that "Americans deserve a CFPB that will continue to stand up against corporate greed—not an agency shut down by officials looking out for themselves." They emphasized that Musk's involvement with DOGE could undermine consumer protections in the digital payments sector, where his new digital wallet platform is poised to benefit from reduced oversight.

Musk's acquisition of social media platform X and its integration with digital payments has placed him in a position where actions at DOGE may serve his financial interests. The CFPB has been focusing on regulating digital wallets to protect consumers from fraud, but reports suggest that Musk’s operatives have accessed sensitive data, potentially giving X an unfair advantage.

The senators wrote, "[T]hrough his efforts at DOGE to target the CFPB, Mr. Musk is actively undermining an agency directly responsible for supervising—and if necessary, disciplining—his company’s new P2P system."

Concerns were also raised regarding Tesla. The senators noted that "The CFPB plays a critical role in supervising the auto lending industry and protecting consumers from corporate malfeasance and scams," indicating potential benefits for Tesla through actions taken by DOGE at the CFPB.

Warren and Schiff demanded transparency about Musk’s involvement with the CFPB and clarification on compliance with federal conflict-of-interest rules. They also sought assurance that safeguards are in place to prevent interference with CFPB operations due to Musk’s personal financial interests.