The Senate voted on Wednesday to remove a key financial regulator’s ability to monitor digital platforms like X. This decision comes as Elon Musk, the owner of the social media company X, has become a prominent figure advocating for reducing the agency’s workforce. The resolution, which still needs House approval, would nullify a rule finalized last year by the Consumer Financial Protection Bureau (CFPB) that established its authority to oversee digital payment offerings. Republicans argue this is necessary to correct the CFPB’s overreach and foster innovation. Two Democrats, Sens. Elizabeth Warren and Adam Schiff, are now calling on the Office of Government Ethics to investigate Musk’s compliance with federal ethics laws due to his financial interests and involvement with the Department of Government Efficiency (DOGE). They question whether Musk has recused himself from DOGE’s work at the CFPB or received ethics waivers given his ownership of X and leadership at Tesla. The White House has offered vague assurances that Musk would avoid conflicts of interest, but he has not distanced himself publicly from DOGE’s actions at the CFPB. Warren and Schiff highlight that the CFPB plays a critical role in supervising industries including auto lending, which could directly benefit Musk’s businesses. — news from The Verge
