The CFPB, created in the wake of the 2008 financial crisis, was originally tasked with protecting consumers from unfair and deceptive financial practices. However, under the leadership of Mick Mulvaney and Kathy Kraninger, the agency has shifted its focus away from enforcement actions and rulemaking related to cryptocurrencies.
This shift in focus has left a regulatory gap in the oversight of cryptocurrencies, as other agencies such as the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have taken on more prominent roles in regulating the industry.
The lack of clear regulatory guidance from the CFPB has raised concerns among industry stakeholders, who argue that a more coordinated approach to regulating cryptocurrencies is needed to protect consumers and maintain market stability.
As the Biden administration takes office, it remains to be seen how the CFPB’s role in regulating cryptocurrencies will evolve. Some experts predict that the agency may take a more active approach under new leadership, while others believe that its role will continue to be limited in comparison to other regulatory agencies.
