Page 5 - February 20, 2025 Bulletin

aRTiCLeS

the appointments of Acting Comptroller Rodney Hood and DOGE Recommends Terminating
Acting CFPB Director Russell Vought tipped the FDIC’s partisan CDFI Fund Contracts
composition out of balance.
A team led by Elon Musk is recommending that the Treasury
Trump Orders Treasury Department Department cancel hundreds of contracts funded through its
to Stop Penny Production Community Development Financial Institutions Fund, according
to an alert by the CDFI Coalition.
President Trump has announced he has ordered a stop to the Musk’s Department of Government Efficiency, or DOGE, has
production of new pennies, although it was not immediately been appointed by President Trump to identify and halt alleged
clear whether he has the legal authority to do so.
wasteful spending. DOGE is not an official government body
In a post on Truth Social, Trump said that the production of each and some legal experts have questioned its authority to cancel
new penny costs more than two cents. (The U.S. Mint said the congressionally approved spending. According to the alert,
cost in fiscal year 2024 was 3.7 cents per penny.) The president the Treasury is reviewing DOGE’s recommendations that the
said he has ordered Treasury Secretary Scott Bessent to cease department cancel some of the CDFI Fund’s external contracts,
penny production. including external reviewer contracts to evaluate applications for
the New Markets Tax Credit Program and the Native American
“Let’s rip the waste out of our great nations [sic] budget, even if
it’s a penny at a time,” Trump said. CDFI Assistance Program.
The CDFI Fund in January opened the fiscal year 2025 funding
Article I of the U.S. Constitution gives Congress the power to
coin and regulate money, so it is unclear whether Trump’s order round, with plans to distribute approximately $348 million in
would survive a legal challenge, should one be filed. awards, pending final congressional appropriations. Awards from
the program support CDFIs that provide affordable financing
House Lawmakers Propose and related services to low-income communities and populations
that lack access to credit, capital and financial services.
Regulatory Framework for
Stablecoins Trump Administration Halts CFPB

The House Financial Services Committee has released a Funding, Activities
discussion draft of a proposed bill to establish a regulatory The new acting director of the CFPB has told the Federal
framework for stablecoins, building off a nearly identical bill Reserve to halt funding for the bureau and ordered staff to pause
introduced in the Senate. all activities. The announcement came after Elon Musk on X

The Stablecoin Transparency and Accountability for a Better suggested the CFPB would be eliminated.
Ledger Economy, or STABLE, Act builds off the committee’s The CFPB is unique among federal agencies in that its funding
work in the last Congress to provide multiple regulatory comes directly from the Fed based on a request from the bureau’s
pathways for payment stablecoin issuers in the U.S., according director. Russ Vought, the recently confirmed director of the
to a summary of the legislation. A key difference is the current Office of Management and Budget, is currently acting CFPB
bill would give the OCC the authority to approve and supervise director, assuming the acting position Friday from Treasury
federally qualified nonbank payment stablecoin issuers. The Secretary Scott Bessent, according to news reports. On Saturday,
committee’s previous bill included a federal pathway through the Vought announced on X that he informed the Fed that CFPB
Federal Reserve. will not be taking its next draw of funding because it is not
The Senate bill – the Guiding and Establishing National “reasonably necessary” to carry out its duties.
Innovation for U.S. Stablecoins, or GENIUS, Act – also would “The bureau’s current balance of $711.6 million is in fact
establish procedures for institutions seeking licenses to issue excessive in the current fiscal environment,” Vought said. “This
stablecoins. For issuers of more than $10 billion of stablecoins, spigot, long contributing to CFPB’s unaccountability, is now
the GENIUS Act would apply the Fed’s regulatory framework to being turned off.” Also, in a separate post, Vought claimed
depository institutions and the OCC’s framework for nonbank the bureau “has been a woke and weaponized agency against
issuers. It allows for state regulation of issuers under $10 billion disfavored industries and individuals for a long time.”
in market capitalization and provides a waiver process for issuers
exceeding the threshold to remain state-regulated. The CFPB was created by Congress following the 2008 financial
crisis and it is unclear whether President Trump has the authority
Lawmakers in both chambers said they will work together to craft to unilaterally eliminate the agency, should he choose to do that.
a final bill.

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