# Coinbase Celebrates Possible Death of the Consumer Financial Protection Bureau (CFPB) as Client Grievances Accumulate
* The Trump government has been critical of the organization previously.
* Brian Armstrong and Elon Musk have both voiced backing for the notion.
Coinbase co-creator and CEO Brian Armstrong has greeted the concept of possibly “terminating” the Consumer Financial Protection Bureau.
Armstrong composed in February that it was “absolutely the correct action,” answering a remark from Elon Musk, who posted a picture of a gravestone with the content “RIP CFPB.”
Around the same period, the Trump government decreased the agency’s functions, which was greeted by key figures in the digital currency area, including Armstrong and Gemini’s Tyler Winklevoss. TruBit Collaborates with Morpho to Introduce DeFi Unearned Revenue in Latin America
What Armstrong neglected to state is that the Consumer Financial Protection Bureau has gotten 7,775 client grievances from Coinbase clients since Coinbase was set up in 2011.
The latest grievance to the CFPB was submitted on February 22. The grievance reports included 1,734 problems with funds not showing up on schedule and 1,879 claims of presumed scams.
The CFPB was set up over 10 years prior after the worldwide monetary emergency and was effectively supported for by Democratic Senator Elizabeth Warren.
Its motivation is to furnish purchasers with a method for recuperating funds lost because of fraud and to consider organizations responsible for unscrupulous business rehearses. Toncoin (TON) Value Forecast for March 26th
Armstrong proceeded, “The CFPB is basically unlawful.” “Regardless of whether it weren’t unlawful, it ought to be canceled on the grounds that we as of now have the Department of Justice to deal with fraud claims, and there are numerous other monetary administrations controllers. It is basically an extreme association that is as damaging as a dangerous growth and hurtful to the country.”
Local area remarks beneath Armstrong’s tweet noticed that the Supreme Court governed last year that the CFPB is sacred.
Coinbase was scrutinized in December for securing client accounts, and the organization declined to remark on the matter to *DL News*.
As reported by Reuters, a New York jurist rejected a class-action suit targeting Coinbase the prior month. The litigation asserted that the firm was unlawfully peddling securities and functioning as an unregistered broker-dealer.
The fate of the Consumer Financial Protection Bureau (CFPB) stays unclear. Interim Director Russell Vought mandated a pause on all bureau operations in February, possibly resulting in the rejection of ongoing consumer protection matters. The National Treasury Employees Union reacted by suing the administration, asserting the CFPB’s disbandment was illegal. Coinbase has warned investors concerning the CFPB’s regulations and activities, highlighting their current and prospective influence on its operations. They declared that market instability has prompted consumer protection agencies like the CFPB to attempt direct regulation of the crypto sector. Despite a prior triumph against the SEC, Coinbase CEO Brian Armstrong remains cautious of regulation. He is a robust advocate of Fairshake, a crypto-backed political action committee that expended a record $41 million in the 2024 elections to back pro-industry contenders.
Armstrong’s position differs from Robinhood CEO Vlad Tenev, who believes his retail stock and crypto exchange profits from regulatory supervision. Since its launch in 2013, Robinhood’s clientele has lodged approximately 2,028 grievances with the CFPB, roughly four times the amount filed against rival Coinbase.
Coinbase insists that it does not enumerate, offer, or vend securities on its exchange and is ready to contend against the remaining claims in district court.
The quantity of grievances typically aligns with the magnitude of these firms’ consumer pools. Robinhood possesses roughly 24 million consumers, whereas Coinbase touts in excess of 100 million.
*Andrew Flanagan examines the marketplaces for DL News. Possess a burning clue? Dispatch him an electronic mail at [email protected].*
