Cara Petersen, acting enforcement director at the U.S. Consumer Financial Protection Bureau (CFPB), resigned after criticizing the Trump administration’s policies.

In an internal email obtained by Reuters on June 11, Petersen said the administration’s approach blocked the CFPB from doing its job.

“I have served under every director and acting director in the bureau’s history and never before have I seen the ability to perform our core mission so under attack,”

Petersen wrote. She described reductions in staff, canceled cases, and broken settlements as major setbacks to CFPB enforcement.

The Trump administration reportedly moved to cut 90% of the agency’s workforce. Petersen referred to the downsizing as “thoughtless reductions in staff” that harmed consumer protection.

Trump administration layoffs hit CFPB operations

Between 1,400 and 1,500 employees received termination notices in April, according to court documents.

The layoffs were part of a broader effort to shrink the federal workforce. However, Judge Amy Berman Jackson issued an injunction that blocked the job cuts temporarily.

The legality of those terminations remains uncertain. A federal appeals court in Washington, D.C., is reviewing whether the Trump administration can overturn the injunction.

In her message, Petersen said she had witnessed the “inexplicable dismissals of cases” and the “terminations of negotiated settlements that let wrongdoers off the hook.” These actions, she wrote, weakened CFPB enforcement mechanisms.

CFPB crypto oversight may face setbacks

The CFPB plays a key role in overseeing consumer complaints against financial firms, including U.S.-based crypto exchanges.

The agency investigates fraud, predatory practices, and transparency issues. A reduction in CFPB enforcement capacity could affect crypto oversight and related investigations.

The CFPB was established after the 2008 financial crisis to regulate lending, credit, and money transfer businesses. The agency also receives complaints about crypto platforms, adding a layer of regulation in the digital asset space.

If the CFPB’s enforcement arm weakens, oversight of financial products—including those in crypto—could become inconsistent. That could raise questions about protections for digital asset users.

Split over CFPB effectiveness grows

Republicans and Democrats remain divided on the CFPB’s role. Many Republicans say the agency has too much unchecked authority.

In contrast, most Democrats view it as necessary for financial regulation and consumer protection.

Russell Vought, appointed by Trump to head the Office of Management and Budget, recently dropped major CFPB enforcement cases. These included investigations involving Walmart and Capital One.

These dismissals added to concerns about the agency’s future. Petersen said the decisions reflected a lack of commitment to consumer protections.

“Trump has no intention to enforce the law in any meaningful way,”

she wrote in her email, as quoted by Reuters Legal.

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