President Trump's new acting director of the Consumer Financial Protection Bureau (CFPB), Treasury Secretary Scott Bessent, has issued an order to halt indefinitely "all rulemaking, communications, litigation, and other activities" at the agency. This decision raises concerns about its potential impact on consumer privacy protection efforts.

Alexandra Reeve Givens, president and CEO of the Center for Democracy & Technology, expressed concern over this development. She stated, "The CFPB plays a critical role in protecting against some of the most harmful impacts of the data broker industry." She emphasized that when private data such as Social Security numbers and banking history is sold, consumers face increased risks like predatory financial offers and identity theft. "Delaying or stopping those efforts puts ordinary families in harm’s way," she added.

Reeve Givens also highlighted recent actions by President Trump, including the firing of Democrat commissioners from key agencies like the National Labor Relations Board and the Equal Employment Opportunity Commission. These actions have left these agencies without a quorum to continue their work. She noted that "today’s action is part of a broader effort to knee-cap key federal agencies that challenge unethical, predatory and illegal practices."

The CFPB serves as the primary consumer protection agency within the financial sector. It was actively engaged in creating rules to protect consumers from unethical data broker practices and ensure safe use of online payment systems before these initiatives were halted by Bessent's order.

In recent years, CFPB has implemented open banking standards to foster competition while safeguarding consumer privacy. It has also clarified requirements for employers using worker surveillance technology under the Fair Credit Reporting Act and addressed data collection issues in video games affecting children and parents.