4:18 am - February 12, 2025
Elon Musk made headlines in 2022 when he purchased Twitter, rebranding it as “X” with ambitious plans to transform it into an “everything app.” This vision includes enabling users to send money directly to each other and potentially manage their entire financial lives through the platform. Musk’s interest in building a financial ecosystem took a significant step forward earlier this year when X CEO Linda Yaccarino announced a partnership with Visa to launch a digital wallet and peer-to-peer payments platform. This move is set to roll out later this year, signaling Musk’s push into the financial services sector. However, Musk’s involvement in the financial world has raised eyebrows, particularly as he appears to be leading efforts to dismantle the Consumer Financial Protection Bureau (CFPB), the federal agency tasked with overseeing financial products and services.
The CFPB, established in the wake of the 2008 financial crisis, has played a critical role in protecting consumers from predatory lending practices, deceptive banking fees, and other financial abuses. Yet, Musk has made no secret of his disdain for the agency. In a recent post on X, he wrote, “RIP CFPB,” accompanied by a tombstone emoji, signaling his desire to eliminate the regulator. Hours after this post, the Department of Government Efficiency (DOGE), led by Musk, took the unprecedented step of deleting the CFPB’s X account and gaining access to the agency’s systems. The CFPB’s acting director has since instructed employees to “stand down” from all work, halting even essential functions like enforcement actions against financial abuse. This abrupt shutdown has alarmed consumer advocates and ethics experts, who point to a glaring conflict of interest: Musk, as the world’s richest individual, owns businesses that stand to benefit directly from weaker financial regulation.
Ethics experts are sounding the alarm over Musk’s dual role as a government official and the head of companies with significant financial interests. Richard Painter, a University of Minnesota law professor and former ethics lawyer in the George W. Bush administration, told CNN that Musk must recuse himself from any involvement with the CFPB to avoid violating federal conflict of interest laws. Painter emphasized that such laws apply to all federal officials, from high-ranking cabinet members to lower-level employees, and that Musk’s role as a special government employee does not exempt him from these rules. “Elon Musk needs to stay away from the CFPB,” Painter said bluntly. “If there is any evidence that he has participated in a matter with the CFPB, impeding the work there, then he has risked violating the statute. That’s a slam dunk.”
Beyond his payments platform, Musk’s other ventures, particularly Tesla, have further entangled him with the CFPB. Tesla operates a financing arm that provides car loans, a product regulated by the CFPB. Additionally, CFPB employees are prohibited from owning Tesla stock due to the company’s ties to financial services. Yet, Tesla’s largest shareholder—Musk himself—is now at the center of efforts to dismantle the agency responsible for overseeing its financial practices. Legal experts describe this situation as deeply concerning and ironic. Christopher Peterson, a University of Utah law professor and former CFPB official, called it “absurdly ironic,” arguing that it undermines the principles of fair governance. “It’s turning the notion of government by the people and for the people on its head,” Peterson said.
The White House has defended Musk’s role, stating that he will file a confidential financial disclosure as an unpaid special government employee. However, this does little to address concerns about his active involvement in dismantling the CFPB. Musk has been vocal about his opposition to the agency, tweeting in support of its elimination and describing it as duplicative and unnecessary. Ethics experts argue that such public statements make it impossible for Musk to truly recuse himself, as they suggest he has already influenced the agenda of those within the agency. Kathleen Engel, a Suffolk University Law School professor, expressed alarm over the potential consequences of paralyzing the CFPB, which she likened to removing the “cop on the beat” in the financial sector. Without the agency, consumers would be left vulnerable to exploitation by large corporations.
As Musk continues to expand X’s financial ambitions, critics warn that his efforts to gut the CFPB pose a significant threat to consumer protections. Advocacy groups like Better Markets highlight the importance of the agency’s work, noting that it has secured nearly $20 billion in relief for 195 million consumers. Dennis Kelleher, the group’s CEO, accused Musk of seeking to cripple an agency that protects the very consumers he aims to serve through his financial products. With X preparing to launch peer-to-peer payments and a digital wallet, the stakes could not be higher. If Musk succeeds in weakening or eliminating the CFPB, the consequences for consumers and the broader financial system could be profound, leaving many to wonder whether the promise of convenience and innovation is worth the cost of lost protections and accountability.