Elon Musk's Influence Under Scrutiny As Senate Votes To Block CFPB's Digital Payments Oversight, Sparks Conflict-Of Interest Probe

The U.S. Senate voted on Wednesday to revoke the Consumer Financial Protection Bureau's authority to oversee digital payment platforms. This move could reportedly directly benefit Elon Musk's social media company, X.

What Happened: The rule, finalized last year, was designed to regulate fraud and privacy issues in online financial transactions, similar to its oversight of traditional financial institutions, reported The Verge.

Republicans backing the resolution argued that the CFPB had overreached its regulatory scope. However, Sen. Jack Reed (D-RI) framed the decision differently, saying, "A vote in favor of this resolution is a vote to strip federal oversight of Elon Musk's payments company."

Following the Senate's move, Sens. Elizabeth Warren (D-Mass.) and Adam Schiff (D-Calif.) sent a letter to the Office of Government Ethics (OGE), demanding an inquiry into Musk's potential conflicts of interest.

See Also: Capital One, Berkshire Hathaway, Rocket Companies Shares Move Higher After CFPB Drops Lawsuits

The lawmakers questioned whether Musk, as a “special government employee” with influence over the Department of Government Efficiency or DOGE, had improperly used his position to weaken the CFPB's oversight, benefiting X, Tesla, and Visa.

Why It Matters: Musk has been a vocal critic of the CFPB. Last month, he took to X, and posted "CFPB RIP."

CFPB RIP 🪦

— Elon Musk (@elonmusk) February 7, 2025

His involvement with DOGE, which has played a role in curtailing CFPB operations, has also raised concerns over regulatory fairness and potential self-dealing.

In February, President Donald Trump also repeatedly said that the bureau is finished. Referring to it as "the ultra-left CFPB," the President stated that he took steps to dismantle the agency after receiving emotional pleas from bankers and loan officers who were struggling under its regulations.

The resolution now moves to the House for approval, while the ethics investigation into Musk's role remains ongoing.

Image via Shutterstock

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.