All work at the CFPB, including supervision and examination activities, has ceased following an order by the bureau’s new acting director. Several rulemakings are also on pause.
Federal regulation is needed for data privacy, earned wage access products and artificial intelligence, industry experts say. But states may end up carrying the ball on some of these issues plus others.
The stay for now only applies to some lenders. But a pending court ruling in a Kentucky lawsuit against the bureau’s Section 1071 rule could stay compliance with the rule for all covered entities.