CFPB Ordered to Stop All Enforcement and Rulemaking Activity

This morning, after recently confirmed Treasury Secretary Scott Bessent was named Acting Director of the Consumer Financial Protection Bureau, CFPB staff received a directive to halt enforcement activity until future notice. Specifically, staff were directed:

• Not to approve or issue any proposed or final rules or formal or informal guidance;
• To suspend the effective dates of all final rules that have been issued or published but that have not yet become effective;
• Not to commence, take additional investigative activities related to, or settle enforcement actions;
• Not to issue public communications of any type, including publication of research papers;
• Not to approve or execute any material agreements, including related to employee matters or contractors; and
• Not to make or approve filings or appearances by the Bureau in any litigation, other than to seek a pause in proceedings.

Enforcement attorneys have already begun filing notices in pending litigation notifying the courts of their inability to appear further in litigation for any purpose other than to seek stays of the cases. We will continue to monitor the situation for further developments.

This memorandum is a summary for general information and discussion only and may be considered an advertisement for certain purposes. It is not a full analysis of the matters presented, may not be relied upon as legal advice, and does not purport to represent the views of our clients or the Firm. Pamela A. Miller, an O’Melveny Partner licensed to practice law in New York; Elizabeth L. McKeen, an O’Melveny Partner licensed to practice law in California; Danielle Morris, an O’Melveny Partner licensed to practice law in California; Jorge deNeve, an O’Melveny Partner licensed to practice law in California; Matthew W. Close, an O’Melveny Partner licensed to practice law in California; Meaghan VerGow, an O’Melveny Partner licensed to practice law in the District of Columbia and New York; Steven J. Olson, an O’Melveny Partner licensed to practice law in California; and Jennifer Sokoler, an O’Melveny Partner licensed to practice law in New York, contributed to the content of this newsletter. The views expressed in this newsletter are the views of the authors except as otherwise noted.

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