NEWS: The CFPB recently announced that it is withdrawing four proposed regulations.
- The first is a proposed interpretive rule regarding how the Electronic Fund Transfers Act may apply to emerging payment mechanisms. Under the January 2025 proposal, a stablecoin, bitcoin, or other cryptocurrency transaction conducted in connection with a consumer asset account would have been considered an electronic fund transfer subject to Reg. E.
- The second withdrawn proposal would have banned unfair provisions in credit contracts and specifically prohibited certain terms and conditions. Under the January 2025 proposal, a credit contract could not contain provisions such as a confession of judgment or waiver of exemption. In addition, a covered financial institution could not have enforced any term or condition that permitted it to unilaterally amend a contract or restrain expression.
- The third withdrawn proposal concerned harmful data broker practices. As explained in this League Comment Call, the proposal would have treated data brokers as consumer reporting agencies, required a permissible purpose to obtain credit header data (e.g., name, address, date of birth, and social security number of a consumer) from a consumer reporting agency, and emphasized that marketing is not a permissible purpose to obtain a credit report under the FCRA.
- Fourth, the CFPB has issued an interim final rule that rescinds the final rule “Protections for Borrowers Affected by the COVID-19 Emergency Under the Real Estate Settlement Procedures Act (RESPA), Regulation X.” The final rule was implemented in 2021 to provide relief and prevent foreclosures during the height of the pandemic’s economic impact.
CFPB director nomination withdrawn
The nomination of Jonathan McKernan to serve as CFPB director has been withdrawn. On May 9, 2025, the White House announced that McKernan has instead been tapped to serve as Undersecretary of Treasury for Domestic Policy.
Russell Vought, the Director of the White House Office of Management and Budget, now serves as the CFPB’s acting director. He may continue to do so for an additional 210 days under federal law. The White House has yet to announce a new nominee to lead the CFPB.