Bessent Empowered to Freeze CFPB Under Agency’s Founding Law

Democrats and consumer advocates slammed Treasury Secretary Scott Bessent over his plans to freeze the Consumer Financial Protection Bureau, but he has wide latitude to act under the law Democrats passed to create the agency and strengthen its director.

In his first act Monday after President Donald Trump named him acting CFPB director, Bessent put most of the CFPB’s operations—from enforcement to communication with the outside world—on hold. Only congressionally mandated regulations can move forward without Bessent’s approval, according to an email he sent to CFPB staff that was first reported by Bloomberg Law.

The move echoes plans ...