The U.S. Consumer Financial Protection Bureau has officially withdrawn a proposed rule introduced during President Joe Biden’s administration that aimed to significantly restrict the sale of Americans’ personal data by so-called “data brokers,” according to a Federal Register notice published Wednesday.
The agency also canceled other proposed rules that would have extended consumer protections to emerging digital payment technologies like cryptocurrency and banned certain terms in financial product agreements.
Consumer advocacy group Consumer Reports criticized the rollback, warning it leaves Americans more exposed to identity theft and scams.
President Donald Trump’s administration has been aggressively downsizing the CFPB this year—initially attempting to eliminate the agency altogether and later suggesting it could fulfill its mandate with just 10% of its current workforce. Plans to lay off a large portion of staff are currently paused pending court decisions.
In recent days, senior CFPB officials have continued to reverse much of the Biden-era regulatory agenda. Just last week, the bureau rescinded numerous guidance documents spanning several administrations since 2011.
The January proposal, introduced by former CFPB Director Rohit Chopra, described the data broker industry as a serious risk to both personal privacy and national security, especially for government personnel.
In the notice, current Acting CFPB Director Russell Vought stated the proposal no longer reflects the agency’s updated policy goals or legal interpretation of the Fair Credit Reporting Act. He added that public feedback raised several legal and procedural issues that warrant further analysis before moving forward.
The CFPB has yet to issue an official statement in response to media inquiries.
