CFPB Withdraws Three Proposed Rules, Search for a Permanent Director Continues
On May 15, 2025, the Consumer Financial Protection Bureau (CFPB) published notice in the Federal Register that it is withdrawing three proposals introduced under the previous administration.
First, the CFPB is withdrawing a proposed interpretive rule regarding applicability of the Electronic Fund Transfers Act 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 be considered an electronic fund transfer subject to Regulation E’s requirements.
Next, the CFPB is withdrawing a proposed rule that 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 would not be able to enforce any term or condition that permits it to unilaterally amend a contract or restrain expression.
Finally, the CFPB is withdrawing its proposed rule concerning harmful data broker practices. The proposal, issued in December 2024, 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.
On May 9, 2025, the White House announced that President Trump is nominating Jonathan McKernan as Undersecretary of Treasury for Domestic Policy. It was later confirmed that as a result, Mr. McKernan’s previous nomination to head the CFBP is being withdrawn. Russell Vought, the Director of the White House Office of Management and Budget, is currently serving as acting director of the Bureau. He may continue to do so for an additional 210 days under the Federal Vacancies Reform Act. The White House has yet to announce a new nominee for CFPB director.
