SENATE COMMITTEE ON BANKING, HOUSING, & URBAN AFFAIRS HEARING
Overview
For questions on the note below, please contact Scott Parsons, Edmund Perry, or Ruth Lunsford.
On December 11, the Senate Committee on Banking, Housing, and Urban Affairs held a hearing entitled “Consumer Protection: Protecting Workers’ Money and Fighting for the Dignity of Work.” The witnesses in the hearing was Rohit Chopra, Director, Consumer Financial Protection Bureau (CFPB).
Key Takeaways
The following is a summary of the main topics explored in today’s hearing. Each is discussed in further detail in the Discussion section below.
- Senator Sherrod Brown (D-OH) and Senator Jon Tester (D-MT) will be replaced by incoming Senators Adam Schiff (D-CA) and Andy Kim (D-NJ) as replacements with Republicans as the majority.
- Prior to the open hearing, the Committee convened for an Executive Session to vote on the nomination of Gordon Ito for membership on the Financial Stability Oversight Council (FSOC). The planned renomination vote for current Commissioner Caroline Crenshaw to remain on the Securities and Exchange Commission (SEC) was postponed.
- Several Republicans voiced their criticism of the CFPB’s and other agency’s polarization and partisan agenda under the Biden Administration, led by Committee Ranking Member Tim Scott (R-SC). Senator Scott (R-SC) criticized the agency’s continued rulemaking efforts, following a letter Scott sent to the CFPB on November 17 calling for a cease in rulemaking. Senator Scott (R-SC) also emphasized that consumers can be protected from illicit actors and actions without regulatory agencies being weaponized, referencing accusations of debanking associated with the digital asset industry.
- Director Chopra emphasized that the agency cannot be stagnant based on political timelines when it comes to protecting consumers and that all agency action is within prescribed regulatory bounds and enforcement powers. He also expressed concern regarding “de-banking” practices and acknowledged that there is ongoing litigation.
- Director Chopra acknowledged the bipartisan support for addressing how digital surveillance and data privacy can be purchased by adversaries from data brokers. Director Chopra voiced his efforts to increase database accuracy while ensuring it can only be used by law enforcement. He also implored that to properly identify and prevent fraud, regulators and lawmakers need to look upstream to combat at scale.