Elon's Dogecoin Assault on Financial Supervisory Authority Aligns with His Push for Digital Wallet Service
Elon Musk's platform, formerly known as Twitter, is pushing for a digital wallet feature, asking users to trust it with their money. Interestingly, Musk has taken aim at the Consumer Financial Protection Bureau (CFPB), an organization dedicated to shielding consumers from shady financial schemes. Bloomberg pointed out the timing of Musk's crusade against the CFPB, as his digital wallet venture could potentially fall under the bureau's oversight, given recent rules passed by the agency.
Two weeks ago, X, in collaboration with Visa, announced plans for a peer-to-peer digital payments system. Linda Yaccarino, X's CEO, excitedly announced the upcoming launch of the X Wallet, allowing users to transfer funds and make payments. However, Bloomberg speculated that this deal could have put X under CFPB oversight.
Recently, Musk publicly mourned the CFPB's demise, tweeting, "RIP CFPB." Further, the newly appointed CFPB chief, Russell Vought, told all staff members they didn't need to come to work the following day, slowing down the agency's operations. Vought's actions have triggered lawsuits by the CFPB union, alleging unlawful activities and violations of privacy rights. Employees staged a protest in response to DOGE's actions.
The Crypto industry, a significant financial contributor to the Trump administration, has historically clashed with the CFPB, given its responsibility for policing financial malfeasance, fraud, and criminal activity within the industry. Top voices in the crypto space, such as Coinbase CEO Brian Armstrong and Gemini co-founder Tyler Winklevoss, applauded Musk's attack on the CFPB, with Armstrong posting that the CFPB was "unconstitutional" on X.
Musk is leading the charge in dismantling federal agencies, though he likely isn't the primary architect. The libertarian right has long advocated for defunding, downsizing, and destroying the federal government, which is now being put into action by the Trump administration. A plan to achieve this dystopian vision was outlined in Project 2025, a policy blueprint authored by the Heritage Foundation, a right-wing think tank with connections to billionaires.
Legal challenges and attacks on DOGE's activities have surfaced in recent weeks. The National Treasury Employees Union sued Vought over his handling of the CFPB, while other lawsuits attempted to halt Musk's assault on federal agencies. A dispute over DOGE's access to U.S. Treasury systems resulted in the White House facing a federal judge, who ruled against DOGE's access to the Treasury's payment system. Musk publicly attacked the judge, calling for her impeachment.
[1] Enrichment Data: Leadership Changes and Controversies at the CFPB- Rohit Chopra, the CFPB Director, resigned in February 2025, replaced by Secretary of the Treasury Scott Bessent as Acting Director.- Seth Frotman, the CFPB’s General Counsel, resigned following his efforts to regulate Big Tech and curb "junk" fees.- Russell Vought, the Director of the Office of Management and Budget, took over as Acting Director of the CFPB and made drastic changes to halt much of the Bureau’s work.
[3] Enrichment Data: Potential Oversight of Elon Musk's Digital Wallet Feature- The recent changes at the CFPB could impact its oversight of digital financial services, including Elon Musk's digital wallet feature on X (formerly Twitter).- However, the CFPB's ability to oversee such services is uncertain due to the ongoing controversies and legal challenges surrounding the CFPB's current status.
In light of the ongoing controversies at the CFPB, Elon Musk sees an opportunity to expand the capabilities of his digital wallet feature on X, potentially avoiding strict oversight. Meanwhile, the tech industry, including figures like Coinbase CEO Brian Armstrong, applauds Musk's stance, viewing it as a step towards limiting the CFPB's influence over tech-driven future finances.
