The Consumer Financial Protection Bureau (CFPB) is expected to reduce its involvement in cryptocurrency regulation due to budget cuts and a broader shift in oversight to other agencies.

The Consumer Financial Protection Bureau (CFPB) is expected to reduce its involvement in cryptocurrency regulation due to budget cuts and a broader shift in oversight to other agencies. Ethan Ostroff, a partner at Troutman Pepper Locke law firm, believes the CFPB will step back as other federal agencies, such as the Securities and Exchange Commission (SEC), and state-level regulators take on more responsibilities.

In February 2025, Russell Vought became the head of the CFPB and quickly introduced major funding cuts to streamline the agency. This move is…