Trump Administration Eases Regulations Impacting Agencies and Consumer Protections

The Trump administration is rapidly delivering wins to American companies by rolling back regulations, pausing investigations, and retreating from lawsuits accusing employers of discrimination.

A combination of firings, stop-work orders, and litigation pauses has hobbled regulators such as the Consumer Financial Protection Bureau, the Equal Employment Opportunity Commission, the National Labor Relations Board, and the Securities and Exchange Commission.

The moves have led the SEC to pull back on its attempt to police the cryptocurrency boom and upended efforts at other agencies to protect worker rights.

The speed and scale of the deregulatory moves by President Trump reflect his ambitious agenda to downsize government.

However, consumer advocates argue that regulatory agencies designed to protect ordinary Americans, workers, and homeowners are being gutted. "Under the Trump administration, federal consumer protections are being rapidly stripped away in a lawless process," said Adam Levitin, a professor at Georgetown Law specializing in financial regulation. "This is deregulation by firings."

While it is typical for a new administration to pause some regulations from the previous one, Trump's plan to shrink the federal workforce through buyouts and firings could complicate regulators' ability to perform their duties.

Some policy changes align with a series of executive orders signed by Trump aimed at eliminating programs supporting the rights of transgender individuals and addressing climate change initiatives.

One significant shift in a federal housing program hinted at religious motivations. Scott Turner, the new HUD secretary, stated that enforcement of rules protecting against gender discrimination would be halted, citing a conflict with what he termed "far-left gender ideology."

The overhaul of the Consumer Financial Protection Bureau has effectively led to halting all activities at the agency, which previously regulated financial services companies.

Business groups like the U.S. Chamber of Commerce have long advocated for regulatory relief, labeling the consumer bureau's actions as overreaches.

Russell Vought, the acting director of the consumer bureau, promptly halted all supervision activities and laid off over 70 employees as part of the agency's significant operational changes.

At the SEC, acting chair Mark Uyeda has focused on creating a framework for cryptocurrency regulation while scaling back enforcement efforts. This includes pauses on new regulatory initiatives that would require companies to disclose their climate change impacts.

Lastly, the Equal Employment Opportunity Commission is seeing changes in transgender discrimination cases, as recent executive orders create uncertainty around ongoing litigation.

In summary, the current regulatory landscape reflects the Trump administration's commitment to reduced oversight across multiple federal agencies, raising concerns among consumer protection advocates.